Used-car retailer Carvana reported record sales and profits for the second quarter, selling approximately 197,000 vehicles, a nearly 40% increase year-over-year. Revenue climbed 52% to $7.38 billion, with profits reaching $310 million. This marks the 10th consecutive quarter of growth for the company.

Despite the strong performance, investors reacted negatively, sending Carvana's stock down about 15% in after-hours trading. The decline was attributed to the company's updated full-year guidance, which fell short of some analyst estimates. Carvana projected earnings between $2.7 and $3 billion for the year, while some forecasts had anticipated over $3 billion.

Chairman and CEO Ernie Garcia III highlighted the company's significant growth potential, noting that Carvana currently holds about 2% of the used-car market. The company is benefiting from increased demand for used vehicles as new car prices remain high.