Anticipating a robust performance, Carvana (NYSE:CVNA), the used-car retailer, has revised its third-quarter adjusted core profit projection to exceed $75 million, a significant upward revision from its initial forecast of “positive adjusted EBITDA.” This revision drove Carvana’s stock higher by approximately 4% during pre-market trading on Wednesday.
In a strategic move to bolster its financial position and achieve positive cash flow, Carvana (NYSE:CVNA) has been diligently reducing its inventory and making substantial cuts to advertising expenditures. Renowned for its online car purchasing platform, the company experienced a surge in popularity amid the COVID-19 pandemic, as consumers gravitated towards easily accessible used vehicles, given the scarcity of new cars as a result of global semiconductor shortages.
Nevertheless, Carvana (NYSE:CVNA) has encountered challenges in selling vehicles acquired at higher costs, as buyers contend with inflation and economic uncertainty, prompting cautious spending behavior. Addressing its financial liabilities, the company recently finalized an agreement with the majority of its term bondholders, resulting in a reduction of its outstanding debt by over $1 billion.
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Author Faith Yakubu 
