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CarMax Inc. (KMX - Free Report) reported first-quarter fiscal 2022 (ended May 31, 2021) net earnings per share of $2.63, surpassing the Zacks Consensus Estimate of $1.61. This outperformance can be attributed to higher-than-anticipated sales from the company’s used and wholesale vehicles segment. Further, the bottom line skyrocketed 8,666.7% year over year.
The auto retailer registered revenues of $7,697.6 million for the May-end quarter, beating the Zacks Consensus Estimate of $6,194 million. Moreover, the top line recorded a 138.4% year-over-year increase.
During the fiscal first quarter, the Zacks Rank #3 (Hold) company opened two new locations and aims to open 10 new stores in fiscal 2022. Per its long-term targets (unveiled last month), CarMax — which shares space with O’Reilly Automotive (ORLY - Free Report) , Advance Auto Parts (AAP - Free Report) and AutoZone (AZO - Free Report) — forecasts $33 billion revenues and 2 million units sold per year by fiscal 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CarMax’s used-vehicle net sales summed $6,157.3 million for the reported quarter, jumping 121% year over year on increase in average retail selling prices and higher unit sales. The reported figure also beat the consensus mark of $5,150 million. The units sold in this segment surged 100.6% year over year to 270,799 vehicles. The average selling price of used vehicles increased 10.7% from the year-ago quarter to $22,533. The used-vehicle gross profit per unit came in at $2,205, higher than the prior-year quarter’s $1,937. Comparable store used-vehicle units soared 99.1%, while revenues climbed 120.6% from the prior-year level.
For the fiscal first quarter, wholesale vehicle revenues skyrocketed 300.9% from the year-ago level to $1,374.4 million. The reported figure also handily beat the Zacks Consensus Estimate of $692 million. Units sold and average selling price climbed 186.6% and 42.2% year over year to 181,389 and $7,266, respectively. Wholesale vehicle gross profit per unit came in at $1,025, up from the year-ago period’s $978.
Other sales and revenues grew 66.4% year over year to $165.9 million for the fiscal first quarter.
CarMax Auto Finance registered a whopping 374% year-over-year jump in income to $241.7 million for the May-end quarter, chiefly reflecting a fall in the provision for loan losses to $24.4 million from the year-earlier quarter’s $122 million alongside an increase in net interest margin and average managed receivables.
Costs, Financials and Share Buyback
Selling, general and administrative expenses flared up 70.5% from the prior-year quarter to $554.1 million. CarMax had cash and cash equivalents of $378 million as of May 31, 2021 compared with $658 million in the corresponding period of 2020. Long-term debt (excluding the current portion) amounted to $1,320.2 million, reflecting a decrease from the year-ago period’s $1,693.8 million.
CarMax repurchased 1 million shares of common stock for $124.5 million under the share-repurchase program during the fiscal first quarter. As of May 31, 2021, it had $1.21 billion remaining under the share-repurchase authorization.
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CarMax (KMX) Q1 Earnings Beat Estimates, Jump 8,666.7% Y/Y
CarMax Inc. (KMX - Free Report) reported first-quarter fiscal 2022 (ended May 31, 2021) net earnings per share of $2.63, surpassing the Zacks Consensus Estimate of $1.61. This outperformance can be attributed to higher-than-anticipated sales from the company’s used and wholesale vehicles segment. Further, the bottom line skyrocketed 8,666.7% year over year.
The auto retailer registered revenues of $7,697.6 million for the May-end quarter, beating the Zacks Consensus Estimate of $6,194 million. Moreover, the top line recorded a 138.4% year-over-year increase.
During the fiscal first quarter, the Zacks Rank #3 (Hold) company opened two new locations and aims to open 10 new stores in fiscal 2022. Per its long-term targets (unveiled last month), CarMax — which shares space with O’Reilly Automotive (ORLY - Free Report) , Advance Auto Parts (AAP - Free Report) and AutoZone (AZO - Free Report) — forecasts $33 billion revenues and 2 million units sold per year by fiscal 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 summed $6,157.3 million for the reported quarter, jumping 121% year over year on increase in average retail selling prices and higher unit sales. The reported figure also beat the consensus mark of $5,150 million. The units sold in this segment surged 100.6% year over year to 270,799 vehicles. The average selling price of used vehicles increased 10.7% from the year-ago quarter to $22,533. The used-vehicle gross profit per unit came in at $2,205, higher than the prior-year quarter’s $1,937. Comparable store used-vehicle units soared 99.1%, while revenues climbed 120.6% from the prior-year level.
For the fiscal first quarter, wholesale vehicle revenues skyrocketed 300.9% from the year-ago level to $1,374.4 million. The reported figure also handily beat the Zacks Consensus Estimate of $692 million. Units sold and average selling price climbed 186.6% and 42.2% year over year to 181,389 and $7,266, respectively. Wholesale vehicle gross profit per unit came in at $1,025, up from the year-ago period’s $978.
Other sales and revenues grew 66.4% year over year to $165.9 million for the fiscal first quarter.
CarMax Auto Finance registered a whopping 374% year-over-year jump in income to $241.7 million for the May-end quarter, chiefly reflecting a fall in the provision for loan losses to $24.4 million from the year-earlier quarter’s $122 million alongside an increase in net interest margin and average managed receivables.
Costs, Financials and Share Buyback
Selling, general and administrative expenses flared up 70.5% from the prior-year quarter to $554.1 million. CarMax had cash and cash equivalents of $378 million as of May 31, 2021 compared with $658 million in the corresponding period of 2020. Long-term debt (excluding the current portion) amounted to $1,320.2 million, reflecting a decrease from the year-ago period’s $1,693.8 million.
CarMax repurchased 1 million shares of common stock for $124.5 million under the share-repurchase program during the fiscal first quarter. As of May 31, 2021, it had $1.21 billion remaining under the share-repurchase authorization.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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