Shares of Carvana (NYSE: CVNA) climbed 21.9% this week, according to data provided by S&P Global Market Intelligence, largely driven by a favorable debt deal and the online used car dealer's better-than-expected second-quarter results.

Shares initially popped more than 40% on Wednesday following the report. Carvana confirmed its Q2 2023 revenue fell a less-than-expected 23.6% year over year to $2.968 billion, while over $1.1 billion in annualized cost reductions helped trim its net losses to $105 million, or $0.55 per share, from a loss of $2.35 per share in the same year-ago period.

Both metrics crushed expectations for a 33% sales decline and a steeper loss of $1.15 per share. In tandem with its quarterly report, Carvana also announced a favorable agreement with debtholders that significantly reduces its outstanding debt by over $1.2 billion and should save it over $430 million over the next two years in required cash interest expenses alone.

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Source Fool.com