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CarMax (KMX) Q1 Earnings Increase 25.6% Y/Y, Top Estimates
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CarMax Inc. (KMX - Free Report) posted earnings per share of $1.13 in the first quarter of fiscal 2018 (ended May 31, 2017), reflecting an increase of 25.6% from 90 cents earned a year ago. Earnings surpassed the Zacks Consensus Estimate of 98 cents as well.
Net sales and operating revenues in the reported quarter rose 10.1% year over year to $4.54 billion. Moreover, the figure also surpassed the Zacks Consensus Estimate of $4.50 billion.
Used vehicle revenues appreciated 12.1% to $3.84 billion in the reported quarter, driven by higher unit sales, which increased 14.1% to 195,273 vehicles. Comparable-store used vehicle unit sales rose 8.2% in the quarter on improved conversion and digital initiatives.
Wholesale vehicle revenues dropped 2.3% to $553.4 million in the quarter. Unit sales almost remained flat at 103,443 vehicles. Average selling price of wholesale vehicles declined 2.9% to $5,113.
Other sales and revenues increased 12.3% to $145.6 million. Its extended protection plan (EPP) revenues grew 20.5% to $91.94 million. Gross profit improved 13.3% to $648.9 million.
CarMax Auto Finance (CAF) reported an increase of 8.5% in income to $109.4 million in first-quarter fiscal 2018.
During the first quarter of fiscal 2018, CarMax opened three stores. This included two stores in Seattle, WA, a new television market, and one store in Pensacola, FL.
The company plans to open another 16 stores within a year from May 31, 2017.
Share Repurchase Program
In the quarter under review, CarMax spent $182.1 million to repurchase 3 million shares under its existing share-buyback program. As of May 31, 2017, the company had $1.41 billion of authorization remaining under its share-repurchase program.
Financial Position
CarMax had cash and cash equivalents of $60.1 million as of May 31, 2017, up from $52.6 million as of May 31, 2016. Long term debt (excluding current position) increased to $797.7 million as of May 31, 2017, from $597.3 million as of May 31, 2016.
Price Performance
In the last three months, the company’s shares have lost 0.4% while the Zacks categorized Retail/Wholesale-Auto Parts industry declined 15.4%.
Expected long-term growth rate for Fox Factory Holding, General Motors and Dana are 15.6%, 9.2% and 3%, respectively.
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Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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CarMax (KMX) Q1 Earnings Increase 25.6% Y/Y, Top Estimates
CarMax Inc. (KMX - Free Report) posted earnings per share of $1.13 in the first quarter of fiscal 2018 (ended May 31, 2017), reflecting an increase of 25.6% from 90 cents earned a year ago. Earnings surpassed the Zacks Consensus Estimate of 98 cents as well.
Net sales and operating revenues in the reported quarter rose 10.1% year over year to $4.54 billion. Moreover, the figure also surpassed the Zacks Consensus Estimate of $4.50 billion.
Used vehicle revenues appreciated 12.1% to $3.84 billion in the reported quarter, driven by higher unit sales, which increased 14.1% to 195,273 vehicles. Comparable-store used vehicle unit sales rose 8.2% in the quarter on improved conversion and digital initiatives.
Wholesale vehicle revenues dropped 2.3% to $553.4 million in the quarter. Unit sales almost remained flat at 103,443 vehicles. Average selling price of wholesale vehicles declined 2.9% to $5,113.
Other sales and revenues increased 12.3% to $145.6 million. Its extended protection plan (EPP) revenues grew 20.5% to $91.94 million.
Gross profit improved 13.3% to $648.9 million.
CarMax Auto Finance (CAF) reported an increase of 8.5% in income to $109.4 million in first-quarter fiscal 2018.
CarMax Inc Price, Consensus and EPS Surprise
CarMax Inc Price, Consensus and EPS Surprise | CarMax Inc Quote
Store Openings
During the first quarter of fiscal 2018, CarMax opened three stores. This included two stores in Seattle, WA, a new television market, and one store in Pensacola, FL.
The company plans to open another 16 stores within a year from May 31, 2017.
Share Repurchase Program
In the quarter under review, CarMax spent $182.1 million to repurchase 3 million shares under its existing share-buyback program. As of May 31, 2017, the company had $1.41 billion of authorization remaining under its share-repurchase program.
Financial Position
CarMax had cash and cash equivalents of $60.1 million as of May 31, 2017, up from $52.6 million as of May 31, 2016. Long term debt (excluding current position) increased to $797.7 million as of May 31, 2017, from $597.3 million as of May 31, 2016.
Price Performance
In the last three months, the company’s shares have lost 0.4% while the Zacks categorized Retail/Wholesale-Auto Parts industry declined 15.4%.
Zacks Rank & Key Picks
CarMax currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the auto space include Fox Factory Holding Corp (FOXF - Free Report) , General Motors Company (GM - Free Report) and Dana Incorporated (DAN - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Expected long-term growth rate for Fox Factory Holding, General Motors and Dana are 15.6%, 9.2% and 3%, respectively.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>