Shares of Carvana Co. (CVNA) soared 17% in premarket trading Tuesday, after the online car buying financing company said it expects to achieve records in revenue, retail units sold and gross profit per unit in the third quarter. The FactSet consensus for third-quarter revenue is a record $1.49 billion. The company expects to breakeven in earnings before interest, taxes, depreciation and amortization in the third quarter. "The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana in metrics that demonstrate strong progress both in growth and towards profitability," said Chief Executive Ernie Garcia. Separately, the company said it plans to offer $1 billion in senior notes, consisting of $500 million in note due 2025 and $500 million in notes due 2028. The company expects to use the proceeds from the offering to pay off its $600 million in 8.875% senior notes due 2023. The stock has run up 88.7% year to date through Monday, while the S&P 500 has edged up 1.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 22, 2020 08:09 ET (12:09 GMT)
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