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Carvana Soars Most Since 2020 on Narrower-Than-Expected Loss
- Auto retailer cites ‘strong start’ after first-quarter beat
- Company is seeking to cut debt, get to positive cash flow
Vehicles sit inside a Carvana Co. car vending machine in Frisco, Texas.
Photographer: Laura Buckman/BloombergThis article is for subscribers only.
Carvana Co.’s shares surged the most since the start of the pandemic after the debt-ridden automobile retailer topped Wall Street’s earnings estimates and predicted a return to an adjusted pretax profit this quarter.
Adjusted earnings before interest, taxes, depreciation and amortization will be positive in the second quarter following a “strong start to the year,” according to a statement late Thursday. Earnings by that measure were negative $24 million in the first quarter. Net income remains well in the red: The per share loss was $1.51 in the period, compared with the average analyst estimate of a $1.96 deficit.