Carvana Soars on Elevated Used-Car Sales, Bullish Outlook

Carvana Co. shares surged after the online used-car retailer reported higher-than-expected results for the most recent quarter, as growing sales and cost cutting brought about stronger profits and a better outlook for the rest of the year.

The Arizona-based company has been trying to slash costs and grow used-vehicle sales in a fragmented market. Operating and selling costs have come down while revenue soared by almost one-third, showing that profits look sustainable.