{"id":34915,"date":"2023-05-04T22:59:16","date_gmt":"2023-05-04T22:59:16","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/carvana-expects-to-post\/"},"modified":"2023-05-04T22:59:47","modified_gmt":"2023-05-04T22:59:47","slug":"carvana-expects-to-record","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/carvana-expects-to-record\/","title":{"rendered":"Carvana expects to record core profit in second quarter; shares jump"},"content":{"rendered":"<p>(Reuters) -Carvana Co said on Thursday that it expects to post a profit in the current quarter and plans to further bring down excess used-car\u00a0inventory as the retailer sharpens its focus on cutting costs, sending its shares surging 26% in aftermarket trading. <\/p>\n<p>The company also reported a smaller-than-expected loss, benefiting from cost cuts.<\/p>\n<p>&#8220;We&#8217;ve already got our plans for the next 9 to 12 months to keep the pedal down and keep making a lot of progress in unit economics,&#8221; CEO Ernie Garcia said on a investor call.<\/p>\n<p>The debt-laden company cut its inventory and slashed advertising expenses to inch closer to profitability and attain positive free cash flow. <\/p>\n<p>The Tempe, Arizona-based company which has been struggling to sell cars, has taken a series of steps, including job reductions, over the past year to cut costs.  <\/p>\n<p>Carvana said its adjusted earnings before interest, taxes, depreciation, and amortization, (EBITDA) are expected to be positive in the second quarter.<\/p>\n<p>&#8220;It is clear our strategy and execution are working as evidenced by our 61% increase in gross profit per unit, the best first quarter GPU in company history,&#8221; said Garcia. <\/p>\n<p>Carvana&#8217;s first-quarter net loss narrowed to $286 million, or $1.51 per share. Analysts were expecting a loss of $2 per share. <\/p>\n<p>Its revenue fell 25.5% to $2.61 billion, in line with estimates.<\/p>\n<p>&#8220;We still have a long way to go to achieve our broader goals, but we are on the right path, and we are moving quickly,&#8221; Garcia added. <\/p>\n<p> (Reporting by Aishwarya Nair in Bengaluru; Editing by Shailesh Kuber)<\/p>\n<p><a href=\"https:\/\/lynettelockhart.com\/client\/carvana-expects-to-record\/file-photo-vehicles-are-displayed-at-a-carvana-dealership-in-2\/\"><img decoding=\"async\" src=\"https:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ430WV-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ430WV-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) -Carvana Co said on Thursday that it expects to post a profit in the current quarter and plans to further bring down excess used-car\u00a0inventory as the retailer sharpens its focus on cutting costs, sending its shares surging 26% in aftermarket trading. The company also reported a smaller-than-expected loss, benefiting from cost cuts. &#8220;We&#8217;ve already [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":35053,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-34915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ430WV-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34915"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34915\/revisions"}],"predecessor-version":[{"id":35054,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34915\/revisions\/35054"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/35053"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34915"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}