Carvana (NYSE:CVNA) stock is rocketing higher on Wednesday following the release of the used car retailer’s earnings report for the second quarter of 2023.
The big news sending shares of CVNA stock higher today is the company’s revenue of $3.88 billion. That’s well above the $2.59 billion in revenue that Wall Street was expecting. It also represents an almost 21% increase year-over-year from $2.97 billion.
Ernie Garcia, founder and CEO of Carvana, said the following in the earnings report:
“Carvana performed exceptionally well in the second quarter and set Company records for Adjusted EBITDA and gross profit per unit, which was up 94% year-over-year, all while continuing to lower expenses.”
To go along with this earnings report, Carvana provided guidance for the third quarter of the year. The company says it expects adjusted EBITDA to be positive, which would be the second consecutive quarter it achieves this goal.
CVNA Stock Jumps on Noteholder Deal
Also helping out shares of CVNA stock is an agreement with noteholders. Carvana and holders of its 2025 and 2027 unsecured notes have agreed to eliminate 83% of maturities. This will also lower required cash interest expense by over $430 million annually for the next two years.
Carvana notes that this deal will reduce its total outstanding debt by more than $1.2 billion. It does so while providing the company with additional funds that it will use to continue on its path to profitability.
CVNA stock is up 24% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
