Carvana (NYSE:CVNA) witnessed a decrease of over 8% in after-market trading following the announcement that the company would be releasing its second-quarter results earlier than anticipated. Instead of the previously scheduled date of August 3, Carvana will now unveil its financial performance on July 19.
The decision to move up the earnings report comes at a time when the U.S. used car market is experiencing a notable shift. According to a report by Cox Automotive on July 14, the total supply of unsold used vehicles on dealer lots in the country stood at 2.22 million units at the end of June. This figure reflects a 10% decline compared to the same period last year.
Carvana, a prominent player in the used car sales sector, has garnered significant attention from investors. As one of the most heavily shorted stocks in the market, with 55% of its shares being short-sold, the company has attracted both praise and skepticism. It is worth noting that the short interest in Carvana has recently decreased from 63% on July 12. In comparison, rival CarMax has a short interest of 12%, while Cars.com sits at 2.5%.
In June, Carvana provided some positive guidance, stating that it expects its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the second quarter to exceed $50 million. This announcement marked a departure from its previous statement, which only indicated that the adjusted EBITDA would be positive without specifying a figure.
Despite the recent dip in share price, Carvana has displayed remarkable growth throughout the year. Currently, its shares have surged by over 700% since the beginning of the year. It is important to note that Carvana shares have historically exhibited a degree of volatility.
As Carvana prepares to release its second-quarter results ahead of schedule, investors and industry observers eagerly await the financial performance of the company, hoping for further insights into its continued growth and market positioning.
Featured Image: Megapixl
Author Faith Yakubu 
