Carvana Co (NYSE:CVNA) shares are trading higher Thursday after the company reported better-than-expected results for the third quarter.

• Q3 Revenue: $3.66 billion, versus estimates of $3.45 billion

• Q3 EPS: 64 cents, versus estimates of 17 cents

Total revenue was up 32% year-over-year. Carvana sold 108,651 vehicles in the third quarter, up 34% year-over-year. Gross profit per unit was $7,427 in the quarter, up $1,475 from the prior year's quarter.

"As we integrate our operations and tap our national footprint, we are not only driving efficient growth, but also improving customer experiences, reducing costs, and strengthening our wholesale platform," said Ernie Garcia, co-founder and CEO of Carvana.

"With just 1% share in an enormous market, significant capacity to support growth, and a business that generates positive feedback as it scales, we are just getting started."

Outlook: Carvana said it expects a sequential increase in year-over-year growth for retail units sold in the fourth quarter. The company also sees full-year adjusted EBITDA above the high end of its previous guidance range of $1 billion to $1.2 billion.

Following Carvana's quarterly results, Baird analyst Colin Sebastian maintained Carvana with a Neutral rating and raised the price target from $160 to $240.

CVNA Price Action: Carvana shares were up 14.4% at $237.28 at the time of writing Thursday, according to Benzinga Pro.

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