Carvana's Q3 Earnings Surprise Sends Stock Soaring

Carvana's stock (CVNA) surged by 12% after the online used car platform reported a surprise adjusted profit in the last quarter, despite a decline in the number of units sold compared to the previous year. The company's adjusted earnings per share were $3.60, beating estimates for a loss of $0.78. Carvana's total gross profit per unit increased by 70% year over year to a record $5,952. However, analysts maintained a Neutral rating on the stock and lowered their price target due to lower unit sales. Carvana has been focused on achieving profitability, leading to layoffs and cost-cutting measures.