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Carvana stock surges after first annual profit: ‘We didn’t disintegrate’

Carvana stock (CVNA) surged as much as 40% on Friday after the used car platform posted its first-ever annual profit and issued better-than-expected guidance.

The results prompted the company’s leadership to take a victory lap during its earnings call on Thursday.

“It’s very hard for a group to go through a period like the last two years and not disintegrate under the pressure. We didn’t disintegrate,” Ernie Garcia, CEO and chairman of Carvana, told analysts.

In its latest results, Carvana posted net income of $150 million for 2023, helped by a gain in debt reduction.

For the current quarter, the company is guiding retail units up slightly on a year-over-year basis and an adjusted core profit “significantly above $100 million.”

The results are a turnaround for a company that was facing bankruptcy speculation in December 2022 and a share price as low as $3.55.

On Friday, shares were…

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