Shares of Carvana Co. (CVNA) are soaring 7.97% in Thursday's trading session following the online used-car retailer's impressive first-quarter earnings report and a series of analyst upgrades. The company not only beat Wall Street expectations but also demonstrated significant growth in vehicle sales and revenue, while providing an optimistic outlook for the future.

Carvana reported first-quarter earnings of $1.51 per share, substantially surpassing the analyst consensus estimate of $0.60. The company's quarterly sales reached $4.23 billion, exceeding the analyst estimate of $3.98 billion and marking a 38.26% year-over-year increase. Notably, Carvana sold a record 133,898 retail units in Q1, up 46% from the previous year.

CEO Ernie Garcia expressed confidence in Carvana's future, stating that the company is well-positioned for even stronger financial performance and larger scales. The company expects sequential growth in both retail units sold and adjusted EBITDA in the second quarter and remains on track for significant growth in fiscal year 2025. Following the strong results, several analysts raised their price targets for Carvana, including Piper Sandler (to $315 from $230), RBC Capital Markets (to $340 from $320), and Wells Fargo (to $310 from $290). The positive sentiment surrounding Carvana's performance and outlook has contributed to the stock's surge, as investors appear optimistic about the company's growth trajectory in the used car industry.