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CarMax's (KMX) Q1 Earnings Miss Estimates, Rise 4.7% Y/Y

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CarMax Inc. (KMX - Free Report) , headquartered in Richmond, VA, operates as a specialty retailer of used vehicles as well as new vehicles. The company is poised to benefit from its focus on the used-car market, which helps it to outperform the industry. CarMax is among the strongest operators in its peer group.

Furthermore, the company’s pursues an aggressive store growth policy, driven by improvements in the sales environment in the U.S. New stores help the company to penetrate into new markets and thus, boost its results. However, rising competition in the used-car market is highly challenging for the company.

Estimate Trend & Surprise History

Investors should note that the first-quarter fiscal 2017 earnings estimate for CarMax has decreased by a penny to 92 cents over last 7 days.

The company has delivered positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 0.85%. Thus investors have been eagerly awaiting CarMax latest earnings report.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

CarMax’ earnings increased 4.7% to 90 cents per share in the first quarter of fiscal 2017, missing the Zacks Consensus Estimate of 92 cents.

Revenues

CarMax reported revenues of $4.13 billion, up 2.8% year over year. However, revenues missed the Zacks Consensus Estimate of $4.22 billion.

CARMAX GP (CC) Price and EPS Surprise

CARMAX GP (CC) Price and EPS Surprise | CARMAX GP (CC) Quote

Key Stats/Developments to Note

During the first quarter of fiscal 2017, CarMax opened 2 stores in new markets (one in Springfield, IL and one in San Francisco, CA). Subsequent to the end of the quarter, the company opened a store in El Paso, TX, market. In fiscal 2017, the company plan to open 15 stores.

Zacks Rank

Currently, CarMax has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.

Market Reaction

CarMax’ shares decreased 5.1% to $48.05 following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on CarMax’ earnings report!

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