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CarMax (KMX) Reports Q1 Earnings: What Key Metrics Have to Say
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CarMax (KMX - Free Report) reported $7.69 billion in revenue for the quarter ended May 2023, representing a year-over-year decline of 17.5%. EPS of $1.16 for the same period compares to $1.56 a year ago.
The reported revenue represents a surprise of +5.40% over the Zacks Consensus Estimate of $7.29 billion. With the consensus EPS estimate being $0.74, the EPS surprise was +56.76%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how CarMax performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable Store Used Vehicles Sales - YoY change: -16.2% versus the seven-analyst average estimate of -12.5%.
Revenue per vehicle retailed (ASP) - Used vehicles: $27.3 thousand versus the six-analyst average estimate of $26.8 thousand.
Gross Profit per Unit - Used vehicles gross profit: $2,361 versus the six-analyst average estimate of $2,230.76.
Gross Profit per Unit - Wholesale vehicles gross profit: $1,042 versus $1,023.64 estimated by six analysts on average.
Unit sales - Wholesale vehicles: 161048 compared to the 150859.3 average estimate based on five analysts.
Net sales- Wholesale vehicles: $1.51 billion versus $1.34 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -28.5% change.
Net sales- Used vehicles: $6 billion versus the eight-analyst average estimate of $5.74 billion. The reported number represents a year-over-year change of -14.4%.
Net sales- Other: $171.23 million versus $177.49 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -5.2% change.
Other sales and revenues- Third-party finance fees, net: $0.30 million versus $2.06 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -91.2% change.
Other sales and revenues- Extended protection plan revenues: $111.20 million compared to the $112.06 million average estimate based on six analysts. The reported number represents a change of -4.6% year over year.
Other sales and revenues- Advertising & subscription revenues: $31.40 million compared to the $33.70 million average estimate based on five analysts.
Other sales and revenues- Other revenues including Service: $28.30 million compared to the $24.80 million average estimate based on four analysts.
Shares of CarMax have returned +10.3% over the past month versus the Zacks S&P 500 composite's +4.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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CarMax (KMX) Reports Q1 Earnings: What Key Metrics Have to Say
CarMax (KMX - Free Report) reported $7.69 billion in revenue for the quarter ended May 2023, representing a year-over-year decline of 17.5%. EPS of $1.16 for the same period compares to $1.56 a year ago.
The reported revenue represents a surprise of +5.40% over the Zacks Consensus Estimate of $7.29 billion. With the consensus EPS estimate being $0.74, the EPS surprise was +56.76%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how CarMax performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Comparable Store Used Vehicles Sales - YoY change: -16.2% versus the seven-analyst average estimate of -12.5%.
- Revenue per vehicle retailed (ASP) - Used vehicles: $27.3 thousand versus the six-analyst average estimate of $26.8 thousand.
- Gross Profit per Unit - Used vehicles gross profit: $2,361 versus the six-analyst average estimate of $2,230.76.
- Gross Profit per Unit - Wholesale vehicles gross profit: $1,042 versus $1,023.64 estimated by six analysts on average.
- Unit sales - Wholesale vehicles: 161048 compared to the 150859.3 average estimate based on five analysts.
- Net sales- Wholesale vehicles: $1.51 billion versus $1.34 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a -28.5% change.
- Net sales- Used vehicles: $6 billion versus the eight-analyst average estimate of $5.74 billion. The reported number represents a year-over-year change of -14.4%.
- Net sales- Other: $171.23 million versus $177.49 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -5.2% change.
- Other sales and revenues- Third-party finance fees, net: $0.30 million versus $2.06 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -91.2% change.
- Other sales and revenues- Extended protection plan revenues: $111.20 million compared to the $112.06 million average estimate based on six analysts. The reported number represents a change of -4.6% year over year.
- Other sales and revenues- Advertising & subscription revenues: $31.40 million compared to the $33.70 million average estimate based on five analysts.
- Other sales and revenues- Other revenues including Service: $28.30 million compared to the $24.80 million average estimate based on four analysts.
View all Key Company Metrics for CarMax here>>>Shares of CarMax have returned +10.3% over the past month versus the Zacks S&P 500 composite's +4.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.