CarMax Inc. (KMX - Free Report) posted earnings per share of $1.09 in the third quarter of fiscal 2019 (ended Nov 30, 2018), up 34.6% from 81 cents in the year-ago quarter. Moreover, earnings surpassed the Zacks Consensus Estimate of $1.01.
Net sales and operating revenues in the reported quarter increased 4.6% year over year to $4.3 billion. However, the figure missed the Zacks Consensus Estimate of $4.33 billion. Total gross profit rose 5.6% year over year to $569.2 million.
During the quarter under review, used-vehicle revenues rose 3.6% to $3.5 billion as unit sales increased 2.3% to 173,476 vehicles. The average selling price of used vehicles rose 1.3% to $27,273. Comparable store used-vehicle unit sales declined 1.2%. The downside was primarily caused by lower store traffic, partially offset by improved conversion.
Wholesale vehicle revenues rose 9.2% to $603.6 million in the reported quarter. Unit sales increased 10% to 110,403 vehicles, courtesy of a boost in store base and a higher appraisal buy rate. The average selling price of wholesale vehicles declined 1% to $5,214.
Other sales and revenues increased 12.1% year over year. Moreover, the extended protection plan’s (EPP) revenues rose 11.1%.
CarMax Auto Finance (“CAF”) reported an increase of 6.7% in income to $109.7 million in the quarter under review, reflecting collective effects of an 8.4% rise in average managed receivables and a slightly lower total interest margin percentage.
Store Openings
During third-quarter fiscal 2019, CarMax opened four stores in new television markets of Wilmington, NC; Lafayette, LA; Corpus Christi, TX; and Shreveport, LA.
Share Repurchase Program
In the quarter under review, CarMax spent $254.3 million to repurchase 3.7 million shares under the existing share buyback program. Also, the board approved a share repurchase extension of $2 billion. As of Nov 30, 2018, the company had $2.38 billion of authorization remaining under its share repurchase program.
Financial Position
CarMax had cash and cash equivalents of $35 million as of Nov 30, 2018, up from $26.3 million as of Nov 30, 2017. Long-term debt (excluding current position) amounted to $992.1 million as of Nov 30, 2018, down from $1.04 billion as of Nov 30, 2017.
Zacks Rank & Stocks to Consider
Currently, CarMax has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and America’s Car-Mart, Inc. (CRMT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.5%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 20.5%.
America’s Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have grown 10.1%.
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CarMax Inc. (KMX - Free Report) posted earnings per share of $1.09 in the third quarter of fiscal 2019 (ended Nov 30, 2018), up 34.6% from 81 cents in the year-ago quarter. Moreover, earnings surpassed the Zacks Consensus Estimate of $1.01.
Net sales and operating revenues in the reported quarter increased 4.6% year over year to $4.3 billion. However, the figure missed the Zacks Consensus Estimate of $4.33 billion. Total gross profit rose 5.6% year over year to $569.2 million.
During the quarter under review, used-vehicle revenues rose 3.6% to $3.5 billion as unit sales increased 2.3% to 173,476 vehicles. The average selling price of used vehicles rose 1.3% to $27,273. Comparable store used-vehicle unit sales declined 1.2%. The downside was primarily caused by lower store traffic, partially offset by improved conversion.
Wholesale vehicle revenues rose 9.2% to $603.6 million in the reported quarter. Unit sales increased 10% to 110,403 vehicles, courtesy of a boost in store base and a higher appraisal buy rate. The average selling price of wholesale vehicles declined 1% to $5,214.
Other sales and revenues increased 12.1% year over year. Moreover, the extended protection plan’s (EPP) revenues rose 11.1%.
CarMax Auto Finance (“CAF”) reported an increase of 6.7% in income to $109.7 million in the quarter under review, reflecting collective effects of an 8.4% rise in average managed receivables and a slightly lower total interest margin percentage.
Store Openings
During third-quarter fiscal 2019, CarMax opened four stores in new television markets of Wilmington, NC; Lafayette, LA; Corpus Christi, TX; and Shreveport, LA.
Share Repurchase Program
In the quarter under review, CarMax spent $254.3 million to repurchase 3.7 million shares under the existing share buyback program. Also, the board approved a share repurchase extension of $2 billion. As of Nov 30, 2018, the company had $2.38 billion of authorization remaining under its share repurchase program.
Financial Position
CarMax had cash and cash equivalents of $35 million as of Nov 30, 2018, up from $26.3 million as of Nov 30, 2017. Long-term debt (excluding current position) amounted to $992.1 million as of Nov 30, 2018, down from $1.04 billion as of Nov 30, 2017.
Zacks Rank & Stocks to Consider
Currently, CarMax has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and America’s Car-Mart, Inc. (CRMT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.5%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 20.5%.
America’s Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have grown 10.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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