Carvana On Wednesday, the company raised its 2024 profit forecast after the online used car retailer significantly beat Wall Street's expectations for the third quarter.

Here's how the company performed in the third quarter compared to LSEG's average estimates:

• Earnings per share: 64 cents versus 25 cents expected
• Revenue: $3.65 billion versus expected $3.45 billion

The company's shares rose about 20% in after-hours trading on Wednesday.

For 2024 guidance, Carvana said its adjusted earnings before interest, taxes, depreciation and amortization would be “significantly above the high end” of its previous target of $1 billion to $1.2 billion. The company reported adjusted EBITDA of $339 million last year.

Carvana's new forecast signals expectations of a strong end to the year. The company said it expects a sequential increase in retail vehicle sales in the fourth quarter compared to the previous three months, in which a total of 108,651 vehicles were sold.

In the third quarter, the company's net income was $148 million, down from $741 million a year earlier, boosted by a gain from deleveraging. Adjusted EBITDA was $429 million and adjusted EBITDA margin was 11.7%, both exceeding company records in the second quarter.

The company's third-quarter 2023 results included adjusted EBITDA of $148 million and revenue of $2.77 billion.

Shares of Carvana have risen about 300% this year as the company restructured its operations and cut costs after Wall Street feared the company would go bankrupt in late 2022.

Carvana stock closed Wednesday at $207.31 per share, down less than 1%. Shares hit a new 52-week high of $213.98 per share earlier in the day.