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CarMax's (KMX) Q2 Earnings On Par With Estimates, Decline Y/Y
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CarMax Inc. (KMX - Free Report) delivered second-quarter fiscal 2024 (ended Aug 31, 2023) adjusted earnings per share of 75 cents, which matched the Zacks Consensus Estimate. The bottom line fell from 79 cents per share recorded in the year-ago period.
The auto retailer registered revenues of $7.07 billion for the August-end quarter, which outpaced the Zacks Consensus Estimate of $7.01 billion. The top line contracted by 13.2% year over year.
Segmental Performance
CarMax’s used-vehicle net sales totaled $5.59 billion for the reported quarter, down 11% year over year, owing to a decline in both retail used units and average selling price (ASP). The metric, however, surpassed our estimate of $5.26 billion due to higher-than-expected units sold. While the units sold in this segment tailed off 7.4% year-over-year to 200,825 vehicles, the ASP of used vehicles fell by 4% from the year-ago quarter to $27,500.
Comparable store used-vehicle units declined by 9%, while revenues fell by 12.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,251, lower than the prior-year quarter’s $2,282 and lagging our estimate of $2,293.2.
For the fiscal second quarter, wholesale vehicle revenues tanked 21.8% from the year-ago level to $1,322 million. The reported figure was below our estimate of $1,372.8 million due to a lower-than-anticipated ASP.
Units sold declined by 11.2% to 141,837, while the ASP dipped 12.3% to $8,923. Wholesale vehicle GPU came in at $963, up from the year-ago period’s $881, but lagged our estimate of $1,287.7.
Other sales and revenues contracted 7.3% year-over-year to $101.7 million, missing our estimate of $157.5 million. CarMax Auto Finance witnessed a 26.2% year-over-year decline in income to $135 million in the August-end quarter.
Other Tidbits
Selling, general and administrative expenses increased by 8.3% from the prior-year quarter to $585.7 million. The firm had cash/cash equivalents and long-term debt of $521.1 million and $1,608.7 million, respectively, as of Aug 31, 2023.
During the fiscal second quarter, CarMax did not buy back shares of common stock under the share repurchase program. As of Aug 31, 2023, it had $2.45 billion remaining under the share repurchase authorization.
The company opened no new stores in the quarter. KMX currently operates more than 240 used car stores.
O’Reilly released second-quarter 2023 results on Jul 26. It reported adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.02. The bottom line increased from $8.78 in the prior-year quarter. Quarterly revenues of $4,069 million topped the consensus mark of $3,990 million and were 11% higher than the prior-year figure.
For 2023, O’Reilly expects total revenues in the range of $15.4-$15.7 billion. Earnings per share are expected between $37.05 and $37.55. The forecast for comparable store sales growth is in the range of 5-7%. The free cash flow projection is in the band of $1.9-$2.2 billion. Capital expenditures are expected within the range of $750-$800 million. The company intends to open 180-190 stores this year.
Advance Auto reported second-quarter 2023 results on Aug 23. It reported adjusted earnings per share of $1.43, falling 62% from the year-ago quarter figure and lagging the Zacks Consensus Estimate of $1.72. Advance Auto generated net revenues of $2,686 million, surpassing the Zacks Consensus Estimate of $2,671 million.
Advance Auto estimates 2023 net sales in the band of $11.25-$11.35 billion. Comparable store sales are envisioned to range between negative 0.5% and positive 0.5%. The adjusted operating income margin is envisioned in the range of 4%-4.3%. Advance Auto expects its 2023 capex to be in the range of $200-$250 million. The company targets FCF in the range of $150-$250 million. EPS is forecast between $4.50 and $5.10. It aims to open 40 to 60 new stores this year.
AutoZone posted fourth-quarter fiscal 2023 results on Sep 19. It reported earnings of $46.46 per share, up 14.7% year over year and surpassed the Zacks Consensus Estimate of $44.51 per share. Net sales grew 6.4% to $5,690.6 million. The top line also surpassed the Zacks Consensus Estimate of $5,581 million. Gross profit increased to $2,999.7 million from the prior-year quarter’s figure of $2,755.9 million.
As of Aug 26, 2023, AutoZone had cash and cash equivalents of $277.1 million, up from $264.4 million as of Aug 27, 2022. The total debt amounted to $7,668.5 million as of Aug 26, marking an increase from $6,122.1 million on Aug 27, 2022. Under its share repurchase program, AutoZone repurchased 403,000 shares of its common stock for $1 billion during the fiscal fourth quarter of 2023, at an average price of $2,502 per share.
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CarMax's (KMX) Q2 Earnings On Par With Estimates, Decline Y/Y
CarMax Inc. (KMX - Free Report) delivered second-quarter fiscal 2024 (ended Aug 31, 2023) adjusted earnings per share of 75 cents, which matched the Zacks Consensus Estimate. The bottom line fell from 79 cents per share recorded in the year-ago period.
The auto retailer registered revenues of $7.07 billion for the August-end quarter, which outpaced the Zacks Consensus Estimate of $7.01 billion. The top line contracted by 13.2% year over year.
Segmental Performance
CarMax’s used-vehicle net sales totaled $5.59 billion for the reported quarter, down 11% year over year, owing to a decline in both retail used units and average selling price (ASP). The metric, however, surpassed our estimate of $5.26 billion due to higher-than-expected units sold. While the units sold in this segment tailed off 7.4% year-over-year to 200,825 vehicles, the ASP of used vehicles fell by 4% from the year-ago quarter to $27,500.
Comparable store used-vehicle units declined by 9%, while revenues fell by 12.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,251, lower than the prior-year quarter’s $2,282 and lagging our estimate of $2,293.2.
For the fiscal second quarter, wholesale vehicle revenues tanked 21.8% from the year-ago level to $1,322 million. The reported figure was below our estimate of $1,372.8 million due to a lower-than-anticipated ASP.
Units sold declined by 11.2% to 141,837, while the ASP dipped 12.3% to $8,923. Wholesale vehicle GPU came in at $963, up from the year-ago period’s $881, but lagged our estimate of $1,287.7.
Other sales and revenues contracted 7.3% year-over-year to $101.7 million, missing our estimate of $157.5 million. CarMax Auto Finance witnessed a 26.2% year-over-year decline in income to $135 million in the August-end quarter.
Other Tidbits
Selling, general and administrative expenses increased by 8.3% from the prior-year quarter to $585.7 million. The firm had cash/cash equivalents and long-term debt of $521.1 million and $1,608.7 million, respectively, as of Aug 31, 2023.
During the fiscal second quarter, CarMax did not buy back shares of common stock under the share repurchase program. As of Aug 31, 2023, it had $2.45 billion remaining under the share repurchase authorization.
The company opened no new stores in the quarter. KMX currently operates more than 240 used car stores.
Peer Releases
CarMax’s key peers include O’Reilly Automotive (ORLY - Free Report) , Advance Auto Parts (AAP - Free Report) and AutoZone (AZO - Free Report) .
O’Reilly released second-quarter 2023 results on Jul 26. It reported adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.02. The bottom line increased from $8.78 in the prior-year quarter. Quarterly revenues of $4,069 million topped the consensus mark of $3,990 million and were 11% higher than the prior-year figure.
For 2023, O’Reilly expects total revenues in the range of $15.4-$15.7 billion. Earnings per share are expected between $37.05 and $37.55. The forecast for comparable store sales growth is in the range of 5-7%. The free cash flow projection is in the band of $1.9-$2.2 billion. Capital expenditures are expected within the range of $750-$800 million. The company intends to open 180-190 stores this year.
Advance Auto reported second-quarter 2023 results on Aug 23. It reported adjusted earnings per share of $1.43, falling 62% from the year-ago quarter figure and lagging the Zacks Consensus Estimate of $1.72. Advance Auto generated net revenues of $2,686 million, surpassing the Zacks Consensus Estimate of $2,671 million.
Advance Auto estimates 2023 net sales in the band of $11.25-$11.35 billion. Comparable store sales are envisioned to range between negative 0.5% and positive 0.5%. The adjusted operating income margin is envisioned in the range of 4%-4.3%. Advance Auto expects its 2023 capex to be in the range of $200-$250 million. The company targets FCF in the range of $150-$250 million. EPS is forecast between $4.50 and $5.10. It aims to open 40 to 60 new stores this year.
AutoZone posted fourth-quarter fiscal 2023 results on Sep 19. It reported earnings of $46.46 per share, up 14.7% year over year and surpassed the Zacks Consensus Estimate of $44.51 per share. Net sales grew 6.4% to $5,690.6 million. The top line also surpassed the Zacks Consensus Estimate of $5,581 million. Gross profit increased to $2,999.7 million from the prior-year quarter’s figure of $2,755.9 million.
As of Aug 26, 2023, AutoZone had cash and cash equivalents of $277.1 million, up from $264.4 million as of Aug 27, 2022. The total debt amounted to $7,668.5 million as of Aug 26, marking an increase from $6,122.1 million on Aug 27, 2022. Under its share repurchase program, AutoZone repurchased 403,000 shares of its common stock for $1 billion during the fiscal fourth quarter of 2023, at an average price of $2,502 per share.