Shares of used car retailer Carvana (NYSE: CVNA) rode up higher in pre-market trading at the time of publishing after the company’s losses narrowed in Q2 to -$0.55 per share as compared to -$2.35 in the same period last year. For reference, analysts were expecting a loss of $1.20 per share. The company’s revenues declined by 24% year-over-year to $2.97 billion but was still above consensus estimates of $2.60 billion.
The company’s retail units fell by 35% year-over-year to 76,530 in Q2. Looking forward, in the third quarter, Caravana expects to sell a similar number of retail units as in Q2 and anticipates generating a positive adjusted EBITDA for the second consecutive quarter.
Yesterday, Carvana had given investors only a day’s notice and moved up the release of its quarterly earnings to July 19 instead of August 3.
The retailer also announced a debt restructuring agreement with its noteholders representing “over 90% of outstanding senior unsecured notes to reduce total debt, extend maturities, and lower near-term cash interest expense.”
Carvana is also planning to sell 35 million shares and expects gross proceeds of $350 million.
Analysts are sidelined about CVNA stock with a Hold consensus rating based on two Buys, 13 Holds, and one Sell.
