Carvana Co (NYSE: CVNA) jumped nearly 30% this morning after the used car retailer updated its guidance for the current quarter that came in well ahead of Street estimates.

Here’s what Carvana forecasts for its fiscal Q2

For Q2, the Tempe-headquartered firm now forecasts about $50 million of adjusted EBITDA. In comparison, analysts were way behind at $100,000 only.

The stock market news arrives about a month after Carvana reported better-than-expected results for its first financial quarter. According to CEO Ernie Garcia said:

Our record-breaking 2023 first quarter is evidence that our strategy is working and our Q2 outlook demonstrates our progress continues to positively impact business even faster than expected.

Carvana has been an absolute delight for its shareholders this year. The stock has more than quadrupled since the start of 2023.

Carvana expects improvement in unit economics

Also on Thursday, Carvana said it expects total gross profit per unit to surpass $6,000 in its fiscal second quarter. In the press release today, CEO Garcia also noted:

The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan.

The online car dealer also reiterated its commitment to turning free cash flow positive in the future. Its Chief Executive is scheduled to present the improved guidance at the William Blair Growth Stock Conference later today.

On average, Wall Street sees about $12 a share as fair value for “CVNA” versus close to $20 a share where it’s trading today.

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