Debt-heavy Carvana Co. mentioned Thursday it expects to attain an adjusted revenue above $50 million in its second quarter, an announcement that despatched its share value hovering.

The net used-vehicle retailer — which has within the final a number of months scaled again its progress endeavors, trimmed stock and labored to scale back its money burn to concentrate on bettering profitability in a extra risky gross sales setting — additionally mentioned it expects to soak up adjusted complete gross revenue per automobile of greater than $6,000 within the second quarter.

Carvana shares surged 49 p.c to $23.11 in afternoon buying and selling on Thursday.

Carvana’s estimated adjusted earnings earlier than curiosity, taxes, depreciation and amortization of greater than $50 million within the second quarter could be a swing from the adjusted EBITDA lack of $239 million it reported in the identical interval a 12 months earlier. The corporate recorded a web lack of $439 million within the second quarter of 2022 and a web lack of $2.89 billion for the complete 12 months.

The corporate continues to face stress to restructure its looming debt load. Collectors holding the overwhelming majority of Carvana’s bonds had this 12 months pitched the corporate on methods to pare down debt and enhance liquidity, together with a proposal for a debt-for-equity swap.

Carvana pitched its personal debt alternate provide in March and prolonged the deadline for that a number of occasions. The corporate didn’t get holders of at the least $500 million of its notes to take part earlier than the deal expired June 1.

Following the expiration of that supply, S&P World Rankings upgraded Carvana from a CC issuer credit standing to CCC however mentioned its outlook stays damaging. Its present view is that Carvana’s liquidity “will proceed to erode over the following 12 months with the potential for an additional try at a distressed alternate or different sort of capital restructuring.”