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CarMax (KMX) Misses Q4 Earnings Mark, Boosts Buyback by $2B
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CarMax Inc. (KMX - Free Report) reported fourth-quarter fiscal 2022 (ended Feb 28, 2022) net earnings per share of 98 cents, missing the Zacks Consensus Estimate of $1.28 amid lower-than-anticipated sales volume from the used-vehicle segment. The bottom line also decreased from $1.27 per share recorded in the year-ago period.
The auto retailer registered revenues of $7,686.7 million for the February-end quarter, beating the Zacks Consensus Estimate of $7,566 million. Also, the top line recorded a 48.8% year-over-year increase.
Segmental Performance
CarMax’s used-vehicle net sales summed $5,739.8 million for the reported quarter, up 32.6% year over year owing to an increase in average retail selling prices. The metric also surpassed the consensus mark of $5,607 million. While the units sold in this segment inched down 5.2% year over year to 194,318 vehicles, the average selling price of used vehicles soared 39.7% from the year-ago quarter to $29,312. Units sold also fell short of the consensus mark of 202,879 vehicles. Comparable store used-vehicle units declined 6.5%, while revenues climbed 30.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,195, up from the prior-year quarter’s $2,086.
For the fiscal fourth quarter, wholesale vehicle revenues skyrocketed 160.2% from the year-ago level to $1,765.6 million. The reported figure also beat the Zacks Consensus Estimate of $1,638 million. Units sold and average selling price surged 43.8% and 85.2% year over year to 149,095 and $11,495, respectively. Wholesale vehicle GPU came in at $1,191, which increased from the year-ago period’s $990.
Other sales and revenues rose 15.2% year over year to $181.3 million for the fiscal fourth quarter but missed the consensus mark of $188 million. CarMax Auto Finance witnessed a 3% year-over-year uptick in income to $193.8 million for the February-end quarter.
Other Tidbits
Selling, general and administrative expenses flared up 22.5% from the prior-year quarter to $620.9 million. The firm had cash/cash equivalents and long-term debt of $102.7 million and $3,255.3 million, respectively, as of Feb 28, 2022.
During the fiscal fourth quarter, CarMax bought back 0.9 million shares of common stock for $101.7 million under the share repurchase program. As of Feb 28, 2022, it had $774.5 million remaining under the share-repurchase authorization. To investors’ delight, KMX boosted the buyback program by $2 billion.
The Zacks Rank #4 (Sell) company opened four new locations during the fiscal fourth quarter. A total of 10 new stores were opened in fiscal 2022. As of Feb 28, 2022, KMX operated 230 used car stores. In fiscal 2023, CarMax targets to open 10 more stores. It expects capital expenditure to increase from $308.5 million in fiscal 2022 to $500 million in fiscal 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CarMax has also upwardly revised its long-term targets. It now envisions selling 2-2.4 million vehicles by fiscal 2026, up from the prior view of 2 million units. Additionally, it expects to generate revenues in the band of $33-$46 billion by fiscal 2026, up from the previous view of $33 billion. It has reaffirmed the growth of its national market share of 0- to 10-year-old vehicles of more than 5% by mid-decade.
O’Reilly posted fourth-quarter 2021 results on Feb 9. It posted adjusted earnings per share of $7.64, surpassing the Zacks Consensus Estimate of $6. The bottom line also increased from $5.40 a share recorded in the prior-year quarter. The company surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average of 22.2%.
ORLY registered quarterly revenues of $3,291.5 million, beating the consensus mark of $3,066.7 million. The top line was also 16.36% higher than the prior-year figure of $2,828.8 million. The stock currently carries a Zacks Rank #3 (Hold).
AutoZone reported first-quarter fiscal 2022 (ended Nov 20, 2021) results on Dec 7. Its quarterly earnings of $25.69 per share surged from the prior-year figure of $18.61. The bottom line also surpassed the Zacks Consensus Estimate of $20.83. The company surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average of 23.2%.
AZO’s sales in the last reported quarter grew 16.3% year over year to $3,668.9 million. The top line also outpaced the Zacks Consensus Estimate of $3,358 million. Domestic same-store sales for first-quarter fiscal 2022 rose 13.6%, handily beating the Zacks Consensus Estimate of 3.9%. The stock currently carries a Zacks Rank #3.
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CarMax (KMX) Misses Q4 Earnings Mark, Boosts Buyback by $2B
CarMax Inc. (KMX - Free Report) reported fourth-quarter fiscal 2022 (ended Feb 28, 2022) net earnings per share of 98 cents, missing the Zacks Consensus Estimate of $1.28 amid lower-than-anticipated sales volume from the used-vehicle segment. The bottom line also decreased from $1.27 per share recorded in the year-ago period.
The auto retailer registered revenues of $7,686.7 million for the February-end quarter, beating the Zacks Consensus Estimate of $7,566 million. Also, the top line recorded a 48.8% year-over-year increase.
Segmental Performance
CarMax’s used-vehicle net sales summed $5,739.8 million for the reported quarter, up 32.6% year over year owing to an increase in average retail selling prices. The metric also surpassed the consensus mark of $5,607 million. While the units sold in this segment inched down 5.2% year over year to 194,318 vehicles, the average selling price of used vehicles soared 39.7% from the year-ago quarter to $29,312. Units sold also fell short of the consensus mark of 202,879 vehicles. Comparable store used-vehicle units declined 6.5%, while revenues climbed 30.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,195, up from the prior-year quarter’s $2,086.
For the fiscal fourth quarter, wholesale vehicle revenues skyrocketed 160.2% from the year-ago level to $1,765.6 million. The reported figure also beat the Zacks Consensus Estimate of $1,638 million. Units sold and average selling price surged 43.8% and 85.2% year over year to 149,095 and $11,495, respectively. Wholesale vehicle GPU came in at $1,191, which increased from the year-ago period’s $990.
Other sales and revenues rose 15.2% year over year to $181.3 million for the fiscal fourth quarter but missed the consensus mark of $188 million. CarMax Auto Finance witnessed a 3% year-over-year uptick in income to $193.8 million for the February-end quarter.
Other Tidbits
Selling, general and administrative expenses flared up 22.5% from the prior-year quarter to $620.9 million. The firm had cash/cash equivalents and long-term debt of $102.7 million and $3,255.3 million, respectively, as of Feb 28, 2022.
During the fiscal fourth quarter, CarMax bought back 0.9 million shares of common stock for $101.7 million under the share repurchase program. As of Feb 28, 2022, it had $774.5 million remaining under the share-repurchase authorization. To investors’ delight, KMX boosted the buyback program by $2 billion.
The Zacks Rank #4 (Sell) company opened four new locations during the fiscal fourth quarter. A total of 10 new stores were opened in fiscal 2022. As of Feb 28, 2022, KMX operated 230 used car stores. In fiscal 2023, CarMax targets to open 10 more stores. It expects capital expenditure to increase from $308.5 million in fiscal 2022 to $500 million in fiscal 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CarMax has also upwardly revised its long-term targets. It now envisions selling 2-2.4 million vehicles by fiscal 2026, up from the prior view of 2 million units. Additionally, it expects to generate revenues in the band of $33-$46 billion by fiscal 2026, up from the previous view of $33 billion. It has reaffirmed the growth of its national market share of 0- to 10-year-old vehicles of more than 5% by mid-decade.
Peer Releases
CarMax’s key peers include O’Reilly Automotive (ORLY - Free Report) and AutoZone (AZO - Free Report) .
O’Reilly posted fourth-quarter 2021 results on Feb 9. It posted adjusted earnings per share of $7.64, surpassing the Zacks Consensus Estimate of $6. The bottom line also increased from $5.40 a share recorded in the prior-year quarter. The company surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average of 22.2%.
ORLY registered quarterly revenues of $3,291.5 million, beating the consensus mark of $3,066.7 million. The top line was also 16.36% higher than the prior-year figure of $2,828.8 million. The stock currently carries a Zacks Rank #3 (Hold).
AutoZone reported first-quarter fiscal 2022 (ended Nov 20, 2021) results on Dec 7. Its quarterly earnings of $25.69 per share surged from the prior-year figure of $18.61. The bottom line also surpassed the Zacks Consensus Estimate of $20.83. The company surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average of 23.2%.
AZO’s sales in the last reported quarter grew 16.3% year over year to $3,668.9 million. The top line also outpaced the Zacks Consensus Estimate of $3,358 million. Domestic same-store sales for first-quarter fiscal 2022 rose 13.6%, handily beating the Zacks Consensus Estimate of 3.9%. The stock currently carries a Zacks Rank #3.