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CarMax Inc. (KMX - Free Report) delivered first-quarter fiscal 2024 (ended May 31, 2023) adjusted earnings per share of $1.16, topping the Zacks Consensus Estimate of 74 cents on higher year-over-year gross profit per unit in the used and wholesale vehicle segments. The bottom line fell from $1.56 per share recorded in the year-ago period.
The auto retailer registered revenues of $7,687.1 million for the May-end quarter, which outpaced the Zacks Consensus Estimate of $7,293 million. The top line contracted by 17.4% year over year.
Segmental Performance
CarMax’s used-vehicle net sales totaled $6,001.5 million for the reported quarter, down 14.4% year over year owing to affordability challenges. The metric, however, surpassed the consensus mark of $5,471 million. While the units sold in this segment tailed off 9.6% year over year to 217,924 vehicles, the average selling price of used vehicles fell by 5.5% from the year-ago quarter to $27,258.
Comparable store used-vehicle units declined 11.4%, while revenues fell by 16.2% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,361, higher than the prior-year quarter’s $2,339 and topping the consensus mark of $2,213.9.
For the fiscal first quarter, wholesale vehicle revenues tanked 28.5% from the year-ago level to $1,514.4 million. The reported figure was above the Zacks Consensus Estimate of $1,292.8 million.
Units sold declined 13.6% to 161,048 while the ASP dipped 17.9% to $9,024. Wholesale vehicle GPU came in at $1,042, up from the year-ago period’s $1,029 and topping the consensus mark of $1,016.
Other sales and revenues contracted 5.2% year over year to $171.2 million for the fiscal first quarter, missing the consensus mark of $173 million. CarMax Auto Finance witnessed a 32.8% year-over-year decline in income to $137.4 million in the May-end quarter.
Other Tidbits
Selling, general and administrative expenses fell by 14.8% from the prior-year quarter to $559.8 million. The firm had cash/cash equivalents and long-term debt of $264.2 million and $1,906.5 million, respectively, as of May 31, 2023.
During the fiscal first quarter, CarMax did not buy back shares of common stock under the share repurchase program. As of May 31, 2023, it had $2.45 billion remaining under the share repurchase authorization.
The company opened one new store in the fiscal first quarter. KMX currently operates more than 240 used car stores. In fiscal 2024, it targets opening five new stores.
Some top-ranked players in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Li Auto, Inc. (LI - Free Report) and Wabash National (WNC - Free Report) , each sporting a Zacks Rank #1.
Allison manufactures fully automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. The Zacks Consensus Estimates for ALSN’s 2023 sales and earnings imply year-over-year growth of 7.5% and 19.5%, respectively.
Li Auto designs, develops, manufactures and sells premium smart electric SUVs. The Zacks Consensus Estimates for LI’s 2023 sales and earnings indicate year-over-year growth of 131% and 2,400%, respectively.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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CarMax (KMX) Q1 Earnings & Sales Beat Estimates, Decline Y/Y
CarMax Inc. (KMX - Free Report) delivered first-quarter fiscal 2024 (ended May 31, 2023) adjusted earnings per share of $1.16, topping the Zacks Consensus Estimate of 74 cents on higher year-over-year gross profit per unit in the used and wholesale vehicle segments. The bottom line fell from $1.56 per share recorded in the year-ago period.
The auto retailer registered revenues of $7,687.1 million for the May-end quarter, which outpaced the Zacks Consensus Estimate of $7,293 million. The top line contracted by 17.4% year over year.
Segmental Performance
CarMax’s used-vehicle net sales totaled $6,001.5 million for the reported quarter, down 14.4% year over year owing to affordability challenges. The metric, however, surpassed the consensus mark of $5,471 million. While the units sold in this segment tailed off 9.6% year over year to 217,924 vehicles, the average selling price of used vehicles fell by 5.5% from the year-ago quarter to $27,258.
Comparable store used-vehicle units declined 11.4%, while revenues fell by 16.2% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,361, higher than the prior-year quarter’s $2,339 and topping the consensus mark of $2,213.9.
For the fiscal first quarter, wholesale vehicle revenues tanked 28.5% from the year-ago level to $1,514.4 million. The reported figure was above the Zacks Consensus Estimate of $1,292.8 million.
Units sold declined 13.6% to 161,048 while the ASP dipped 17.9% to $9,024. Wholesale vehicle GPU came in at $1,042, up from the year-ago period’s $1,029 and topping the consensus mark of $1,016.
Other sales and revenues contracted 5.2% year over year to $171.2 million for the fiscal first quarter, missing the consensus mark of $173 million. CarMax Auto Finance witnessed a 32.8% year-over-year decline in income to $137.4 million in the May-end quarter.
Other Tidbits
Selling, general and administrative expenses fell by 14.8% from the prior-year quarter to $559.8 million. The firm had cash/cash equivalents and long-term debt of $264.2 million and $1,906.5 million, respectively, as of May 31, 2023.
During the fiscal first quarter, CarMax did not buy back shares of common stock under the share repurchase program. As of May 31, 2023, it had $2.45 billion remaining under the share repurchase authorization.
The company opened one new store in the fiscal first quarter. KMX currently operates more than 240 used car stores. In fiscal 2024, it targets opening five new stores.
Zacks Rank & Key Picks
KMX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some top-ranked players in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Li Auto, Inc. (LI - Free Report) and Wabash National (WNC - Free Report) , each sporting a Zacks Rank #1.
Allison manufactures fully automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. The Zacks Consensus Estimates for ALSN’s 2023 sales and earnings imply year-over-year growth of 7.5% and 19.5%, respectively.
Li Auto designs, develops, manufactures and sells premium smart electric SUVs. The Zacks Consensus Estimates for LI’s 2023 sales and earnings indicate year-over-year growth of 131% and 2,400%, respectively.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.