Shares of Carvana (NYSE:CVNA) were revving higher last month, after the innovative used-car dealer turned in another strong earnings report. Once again, the company reported blowout growth and topped analyst estimates. The stock finished up 29% in August, according to data from S&P Global Market Intelligence.
The gains came almost entirely after its second-quarter earnings report came out on Aug. 7.
Shares of Carvana gained 35% over the two-day span following its earnings report, as the company again saw revenue more than double, with its top line jumping 108% to $986.2 million, easily beating the analyst consensus at $921.2 million.
Units sold increased by 95% to 44,000, and the company took significant steps toward profitability, as gross profit rose 181% to $137.8 million. On the bottom line, Carvana posted a loss of $0.40 per share, slightly ahead of analyst estimates at $0.42.
Carvana continued its rapid expansion across the U.S., opening up in 28 new markets to bring the total to 137 as of the end of the quarter. The company now reaches 65.7% of the country's population, up from 58.6% at the end of 2018.
CEO Ernie Garcia touted the company's performance after its 22nd consecutive quarter of triple-digit revenue growth, and its record gross profit per unit (GPU) of $3,132. He added, "These milestones are the result of our continued focus on delivering exceptional customer experiences and the strong execution of our teams."
Carvana raised its guidance for the full year, with management now calling for 84%-89% revenue growth for a range of $3.6 billion to $3.7 billion, and a 78%-83% increase in units sold, to 167,500-172,500.
Whether Carvana can actually turn profitable remains to be seen, as used-car sales is a notoriously low-margin business, but one thing is clear. Carvana's service and unique model is resonating with car buyers, and the company continues to see a path to delivering more than 2 million cars per year, a goal that indicates that the company's growth streak is far from over.