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CarMax (KMX) Q1 Earnings Miss Estimates, Revenues Fall Y/Y
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CarMax Inc. (KMX - Free Report) reported first-quarter fiscal 2025 (ended May 31, 2024) adjusted earnings per share of 97 cents, which missed the Zacks Consensus Estimate of 99 cents. The bottom line also declined from $1.16 per share recorded in the year-ago period. The auto retailer registered revenues of $7.11 billion in the quarter under review, which fell short of the Zacks Consensus Estimate of $7.19 billion. The top line also contracted 7.5% year over year.
CarMax’s used-vehicle net sales totaled $5.68 billion for the reported quarter, down 5.4% year over year, owing to a decline in unit sales and average selling price (ASP). The units sold in this segment declined 3.1% year over year to 211,132 vehicles and missed our forecast of 228,073 units. The ASP of used vehicles tailed off 2.7% from the year-ago quarter to $26,526 but beat our projection of $26,191. Amid lower-than-expected units sold and ASP, revenues from the segment lagged our estimate of $5.97 billion.
Comparable store used-vehicle units and revenues fell 3.8% and 6.1%, respectively, from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,347, down from the prior-year quarter’s $2,361 and lagged our estimate of $2,901.2 due to higher-than-expected cost of sales.
For the fiscal first quarter, wholesale vehicle revenues contracted 17% from the year-ago level to $1.26 billion. The reported figure was below our projection of $1.32 billion due to lower-than-anticipated units sold and ASP. Units sold decreased 8.3% to 147,685 (versus our forecast of 161,977), and the ASP dipped 10.3% to $8,094 (versus our estimate of $8,139). Wholesale vehicle GPU came in at $1,064, which declined from the year-ago period’s $1,042 and missed our estimate of $1,124.2 due to the higher-than-expected cost of sales.
Other sales and revenues increased 4.8% year over year to $179.5 million, which beat our estimate of $166.7 million. CarMax Auto Finance witnessed a 7% year-over-year rise in income to $147 million at the end of the fiscal first quarter.
Other Tidbits
Selling, general and administrative expenses increased 14% from the prior-year quarter to $638.6 million. The firm had cash/cash equivalents and long-term debt of $218.9 million and $1.59 billion, respectively, as of May 31, 2024.
During the fiscal first quarter, CarMax repurchased shares worth $104 million. As of May 31, 2024, it had $2.26 billion remaining under the share repurchase authorization.
KMX operated 245 used car stores as of May 31, 2024.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved by 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved by 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 and 2025 have moved up 2 cents and 17 cents, respectively, in the past 30 days.
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CarMax (KMX) Q1 Earnings Miss Estimates, Revenues Fall Y/Y
CarMax Inc. (KMX - Free Report) reported first-quarter fiscal 2025 (ended May 31, 2024) adjusted earnings per share of 97 cents, which missed the Zacks Consensus Estimate of 99 cents. The bottom line also declined from $1.16 per share recorded in the year-ago period. The auto retailer registered revenues of $7.11 billion in the quarter under review, which fell short of the Zacks Consensus Estimate of $7.19 billion. The top line also contracted 7.5% year over year.
CarMax, Inc. Price, Consensus and EPS Surprise
CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote
Segmental Performance
CarMax’s used-vehicle net sales totaled $5.68 billion for the reported quarter, down 5.4% year over year, owing to a decline in unit sales and average selling price (ASP). The units sold in this segment declined 3.1% year over year to 211,132 vehicles and missed our forecast of 228,073 units. The ASP of used vehicles tailed off 2.7% from the year-ago quarter to $26,526 but beat our projection of $26,191. Amid lower-than-expected units sold and ASP, revenues from the segment lagged our estimate of $5.97 billion.
Comparable store used-vehicle units and revenues fell 3.8% and 6.1%, respectively, from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,347, down from the prior-year quarter’s $2,361 and lagged our estimate of $2,901.2 due to higher-than-expected cost of sales.
For the fiscal first quarter, wholesale vehicle revenues contracted 17% from the year-ago level to $1.26 billion. The reported figure was below our projection of $1.32 billion due to lower-than-anticipated units sold and ASP. Units sold decreased 8.3% to 147,685 (versus our forecast of 161,977), and the ASP dipped 10.3% to $8,094 (versus our estimate of $8,139). Wholesale vehicle GPU came in at $1,064, which declined from the year-ago period’s $1,042 and missed our estimate of $1,124.2 due to the higher-than-expected cost of sales.
Other sales and revenues increased 4.8% year over year to $179.5 million, which beat our estimate of $166.7 million. CarMax Auto Finance witnessed a 7% year-over-year rise in income to $147 million at the end of the fiscal first quarter.
Other Tidbits
Selling, general and administrative expenses increased 14% from the prior-year quarter to $638.6 million. The firm had cash/cash equivalents and long-term debt of $218.9 million and $1.59 billion, respectively, as of May 31, 2024.
During the fiscal first quarter, CarMax repurchased shares worth $104 million. As of May 31, 2024, it had $2.26 billion remaining under the share repurchase authorization.
KMX operated 245 used car stores as of May 31, 2024.
Zacks Rank & Key Picks
KMX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Blue Bird Corporation (BLBD - Free Report) , Oshkosh Corporation (OSK - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved by 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved by 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 and 2025 have moved up 2 cents and 17 cents, respectively, in the past 30 days.