Carvana soar past Q2 earnings estimates

Yahoo Finance's Jared Blikre explains why Carvana stock's after hours pop on Thursday afternoon.

Video transcript

- And Gus, Carvana is out with earnings. Shares popping here, up just around 11%. Jared, what do you have for us?

JARED BLIKRE: Yeah, shares are popping because they beat the high estimate on revenue, just blowing it away. Up 200% year over year. $3.34 billion was their sales for the second quarter. The estimate was for much lower, $2.46 billion. Even the high estimate was $3.11 billion. Also, the second quarter net earnings per Class A share, $0.26, so that is a profit. I don't have a comparison number for that.

But retail units sold, 107,815. That is an increase of nearly 100% year-over-year. We know why, and we also know that they have pricing power. Sometimes, these used cars are selling more than the MSRP on a new one. Total gross profit of $552 million. That's an increase of 268% year-over-year.

And I do have a quote from Ernie Garcia. He's the founder and CEO of Carvana. "This was a landmark quarter for Carvana. We delivered over 100,000 cars in this quarter, growing 96% versus a year ago, reported our first positive net income quarter." So there you go on that. "Also, this quarter we were also named to the Fortune 500 list, becoming one of the four fastest companies to ever make that list with organic growth."

So there you go. Huge beat for Carvana on its top line.

- Pop here of 9 and 1/2%. Jared Blikre, thanks so much.