Online used-car retailer Carvana stock rises 46%

TEMPE, Ariz.: Used-car retailer Carvana’s shares rallied on bets from traders after cost-cutting efforts led the company to beat Wall Street estimates for adjusted earnings in the second quarter. It closed 46% higher last week.

Carvana is an online used car retailer based in Tempe, Arizona.

Carvana stock climbed to $26.09, or about 68%, surpassing an eight-month high. The previous trading price was $24.23.

Calvana is expected to report adjusted earnings of over $50 million in the second quarter before interest, taxes, depreciation and amortization.

The Tempe, Arizona-based debt-laden company had expected quarterly earnings in May but didn’t release the numbers until last week.

The company said gross profit per unit (GPU) would exceed $6,000, a record improvement of 63% year-over-year.

To be profitable and free cash flow positive, Carvana has reduced inventory and reduced advertising spending.