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CarMax (KMX) Reports Q2 Earnings: What Key Metrics Have to Say
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CarMax (KMX - Free Report) reported $7.07 billion in revenue for the quarter ended August 2023, representing a year-over-year decline of 13.2%. EPS of $0.75 for the same period compares to $0.79 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $7.01 billion, representing a surprise of +0.95%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.75.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how CarMax performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable Store Used Vehicles Sales - YoY change: -12.5% compared to the -8.01% average estimate based on seven analysts.
Number of stores - Total: 240 versus 242.5 estimated by six analysts on average.
Gross Profit per Unit - Used vehicles gross profit: $2,251 compared to the $2,302.61 average estimate based on six analysts.
Gross Profit per Unit - Wholesale vehicles gross profit: $963 versus $1,017.19 estimated by six analysts on average.
Revenue per vehicle retailed (ASP) - Wholesale vehicles: $8.9 thousand versus $8.7 thousand estimated by five analysts on average.
Unit sales - Wholesale vehicles: 141837 versus the five-analyst average estimate of 148357.5.
Net sales- Wholesale vehicles: $1.32 billion versus $1.37 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -21.8% change.
Net sales- Used vehicles: $5.59 billion versus $5.47 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -11% change.
Net sales- Other: $160.72 million compared to the $170.73 million average estimate based on seven analysts. The reported number represents a change of -5.7% year over year.
Other sales and revenues- Third-party finance fees, net: -$1.50 million versus the six-analyst average estimate of $1.77 million. The reported number represents a year-over-year change of -155.6%.
Other sales and revenues- Extended protection plan revenues: $101.70 million compared to the $103.35 million average estimate based on six analysts. The reported number represents a change of -7.4% year over year.
Other sales and revenues- Advertising & subscription revenues: $33.50 million compared to the $32.74 million average estimate based on five analysts.
Shares of CarMax have returned -3.1% over the past month versus the Zacks S&P 500 composite's -2.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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CarMax (KMX) Reports Q2 Earnings: What Key Metrics Have to Say
CarMax (KMX - Free Report) reported $7.07 billion in revenue for the quarter ended August 2023, representing a year-over-year decline of 13.2%. EPS of $0.75 for the same period compares to $0.79 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $7.01 billion, representing a surprise of +0.95%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.75.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how CarMax performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Comparable Store Used Vehicles Sales - YoY change: -12.5% compared to the -8.01% average estimate based on seven analysts.
- Number of stores - Total: 240 versus 242.5 estimated by six analysts on average.
- Gross Profit per Unit - Used vehicles gross profit: $2,251 compared to the $2,302.61 average estimate based on six analysts.
- Gross Profit per Unit - Wholesale vehicles gross profit: $963 versus $1,017.19 estimated by six analysts on average.
- Revenue per vehicle retailed (ASP) - Wholesale vehicles: $8.9 thousand versus $8.7 thousand estimated by five analysts on average.
- Unit sales - Wholesale vehicles: 141837 versus the five-analyst average estimate of 148357.5.
- Net sales- Wholesale vehicles: $1.32 billion versus $1.37 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -21.8% change.
- Net sales- Used vehicles: $5.59 billion versus $5.47 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -11% change.
- Net sales- Other: $160.72 million compared to the $170.73 million average estimate based on seven analysts. The reported number represents a change of -5.7% year over year.
- Other sales and revenues- Third-party finance fees, net: -$1.50 million versus the six-analyst average estimate of $1.77 million. The reported number represents a year-over-year change of -155.6%.
- Other sales and revenues- Extended protection plan revenues: $101.70 million compared to the $103.35 million average estimate based on six analysts. The reported number represents a change of -7.4% year over year.
- Other sales and revenues- Advertising & subscription revenues: $33.50 million compared to the $32.74 million average estimate based on five analysts.
View all Key Company Metrics for CarMax here>>>Shares of CarMax have returned -3.1% over the past month versus the Zacks S&P 500 composite's -2.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.