Carvana expects to record core profit in second quarter; shares jump

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Carvana expects to record core profit in second quarter; shares jump
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Carvana Co said on Thursday that it expects to post a profit in the current quarter and plans to further bring down excess used-car inventory as the retailer sharpens its focus on cutting costs, sending its shares surging 26% in aftermarket trading.

Vehicles are displayed at a Carvana dealership, which allows customers to buy a used car online and have it delivered or pick it up from an automated-tower, in Austin, Texas, U.S., March 9, 2017. REUTERS/Brian Snydersaid on Thursday that it expects to post a profit in the current quarter and plans to further bring down excess used-car inventory as the retailer sharpens its focus on cutting costs, sending its shares surging 26% in aftermarket trading.

The Tempe, Arizona-based company which has been struggling to sell cars, has taken a series of steps, including job reductions, over the past year to cut costs.

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