Carvana on Wednesday raised its 2024 earnings guidance after the online used-car seller significantly beat Wall Street’s third-quarter expectations.

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
• Gain: $3.65 billion versus $3.45 billion expected

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

For 2024, Carvana said 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 $339 million in adjusted EBITDA last year.

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

For the third quarter, the company’s net income was $148 million, up from $741 million a year earlier, which was inflated by gains from debt reduction. Adjusted EBITDA was $429 million and adjusted EBITDA margin was 11.7%, both company highs achieved in the second quarter.

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

Shares of Carvana are up about 300% this year as the company has restructured its operations and cut costs after Wall Street worried about the company filing for bankruptcy 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.