Carvana Co (NYSE:CVNA) is trading higher Friday after the company reported strong fourth-quarter top-line financial results and announced it will acquire a U.S. physical auction business.
Carvana said fourth-quarter revenue increased 105% year-over-year to $3.753 billion, which beat the $3.53 billion estimate. Total gross profit per unit reached $4,566 during the quarter, an increase of $1,187 per unit year-over-year.
"2021 was a year full of meaningful milestones. We sold our one millionth car, achieved our first positive earnings quarter, and became the fastest growing e-commerce company in U.S. history,” said Ernie Garcia, founder and CEO of Carvana.
Carvana entered into a definitive agreement to acquire the auction business of ADESA, a wholly owned subsidiary of KAR Global (NYSE:KAR), for $2.2 billion in cash. In 2021, the ADESA U.S. business facilitated more than one million transactions through its 56 U.S. wholesale vehicle auction sites.
Carvana aims to change the way vehicles are bought and sold by providing a marketplace through its e-commerce platform.
See Also: What's Going On With Opendoor's Stock Today?
CVNA Price Action: Carvana has traded as low as $107.50 and as high as $376.83 over a 52-week period.
The stock closed up 21.37% at $152.99 on Friday.
Photo: Tony Webster from Flickr.
