Carvana shares rally as online used car retailer raises Q3 guidance

investing.com:

Carvana (NYSE:CVNA) shares have jumped premarket after the company lifted its third quarter guidance.

The online used car retailer revealed that it now sees adjusted total GPU above $5,500 in Q3, up from its previous expectation of above $5,000.

Speaking at the 2023 JPMorgan Automotive Conference, Carvana CFO, Mark Jenkins, said the company now has clearer visibility on costs in Q3 compared to Q2.

Carvana shares are up more than 7% premarket, trading around the $47.30 mark, adding to its significant gains so far this year.

Furthermore, Carvana sees adjusted EBITDA in Q3 above $75 million, higher than its previous expectation of just «positive adjusted EBITDA.»

At the JPMorgan conference, CVNA stated it had made fundamental gains in achieving a new level of retail GPU, while its focus on efficiency and profitability has been successful so far in 2023.

Commenting on ADESA US, CVNA's wholesale vehicle auction solutions business that it acquired in February 2022, Jenkins said the company sees an opportunity for it to take market share, which it has done so far this year.