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CarMax (KMX) Q4 Earnings & Sales Miss Estimates, Declines Y/Y
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CarMax Inc. (KMX - Free Report) reported fourth-quarter fiscal 2024 (ended Feb 29, 2024) adjusted earnings per share of 32 cents, which missed the Zacks Consensus Estimate of 45 cents. The bottom line also declined from 44 cents per share recorded in the year-ago period. The auto retailer registered revenues of $5.6 billion in the quarter under review, which fell short of the Zacks Consensus Estimate of $5.7 billion. The top line also contracted 1.7% year over year.
CarMax’s used-vehicle net sales totaled $4.5 billion for the reported quarter, down 0.7% year over year, owing to a decline in average selling price (ASP), partly offset by an increase in unit sales. The units sold in this segment increased 1.3% year over year to 172,057 vehicles but missed our forecast of 176,330 units. The ASP of used vehicles tailed off 2.3% from the year-ago quarter to $25,985 and also missed our projection of $26,899. Amid lower-than-expected units sold and ASP, revenues from the segment lagged our estimate of $4.7 billion.
Comparable store used-vehicle units inched up 0.1%, while revenues fell 2% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,251, down from the prior-year quarter’s $2,277 but exceeding our estimate of $2,248 due to lower-than-expected cost of sales.
For the fiscal fourth quarter, wholesale vehicle revenues contracted 5.5% from the year-ago level to $974.3 million. The reported figure was below our projection of $1,134 million due to lower-than-anticipated units sold and ASP. Units sold decreased 4% to 115,546 (versus our forecast of 133,305), and the ASP dipped 3.2% to $8,034 (versus our estimate of $8,512). Wholesale vehicle GPU came in at $1,120, down from the year-ago period’s $1,187, but topped our estimate of $1,060 due to lower-than-expected cost of sales.
Other sales and revenues decreased 3.7% year over year to $154.7 million, which missed our estimate of $160 million. CarMax Auto Finance witnessed an 18.9% year-over-year rise in income to $147.3 million at the fiscal fourth-quarter end.
Other Tidbits
Selling, general and administrative expenses increased 1.4% from the prior-year quarter to $580 million. The firm had cash/cash equivalents and long-term debt of $574.1 million and $1.6 billion, respectively, as of Feb 29, 2024.
During the fiscal fourth quarter, CarMax repurchased shares worth $49.3 million. As of Feb 29, 2024, it had $2.36 billion remaining under the share repurchase authorization.
KMX operated 245 used car stores as of Feb 29, 2024. The company expects fiscal 2025 capex in the band of $500-$550 million.CarMax now targets to sell more than 2 million vehicles annually through its combined retail and wholesale channels by fiscal 2030.
O’Reilly reported fourth-quarter 2023 results on Feb 7. It reported adjusted EPS of $9.26, which beat the Zacks Consensus Estimate of $9.07. The bottom line also increased from $8.37 recorded in the prior-year quarter. Quarterly revenues of $3,832 million marginally missed the Zacks Consensus Estimate of $3,838 million but increased 5.2% year over year.ORLY had cash and cash equivalents of $279.1 million at the end of the fourth quarter, up from $108.6 million recorded at 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.
AutoZone released fourth-quarter fiscal 2024 results on Feb 27. Earnings of $28.89 per share increased 17.2% year over year and also surpassed the Zacks Consensus Estimate of $26.08 per share. Net sales grew 4.6% year over year to $3.86 billion. The top line marginally surpassed the Zacks Consensus Estimate of $3.85 billion.As of Feb 10, 2024, AutoZone had cash and cash equivalents of $304.1 million, up from $277.1 million as of Aug 26, 2023. Its total debt amounted to $8.63 billion as of Feb 10, 2024, higher than $7.67 billion as of Aug 26, 2023.
Advance Auto posted fourth-quarter 2023 results on Feb 28. The company incurred an adjusted loss of 59 cents per share against an adjusted earnings of $2.88 in the year-ago quarter. The reported figure was also in contrast to the Zacks Consensus Estimate of earnings of 24 cents per share. Net revenues of $2.46 billion missed the Zacks Consensus Estimate of $2.47 billion and also inched down 0.4% year over year. AAP had cash and cash equivalents of $503.5 million as of Dec 30, 2023, higher than $270.8 million on Dec 31, 2022. Total long-term debt was $1.79 billion as of Dec 30, 2023, up from $1.19 billion on Dec 31, 2022.
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CarMax (KMX) Q4 Earnings & Sales Miss Estimates, Declines Y/Y
CarMax Inc. (KMX - Free Report) reported fourth-quarter fiscal 2024 (ended Feb 29, 2024) adjusted earnings per share of 32 cents, which missed the Zacks Consensus Estimate of 45 cents. The bottom line also declined from 44 cents per share recorded in the year-ago period. The auto retailer registered revenues of $5.6 billion in the quarter under review, which fell short of the Zacks Consensus Estimate of $5.7 billion. The top line also contracted 1.7% year over year.
CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote
Segmental Performance
CarMax’s used-vehicle net sales totaled $4.5 billion for the reported quarter, down 0.7% year over year, owing to a decline in average selling price (ASP), partly offset by an increase in unit sales. The units sold in this segment increased 1.3% year over year to 172,057 vehicles but missed our forecast of 176,330 units. The ASP of used vehicles tailed off 2.3% from the year-ago quarter to $25,985 and also missed our projection of $26,899. Amid lower-than-expected units sold and ASP, revenues from the segment lagged our estimate of $4.7 billion.
Comparable store used-vehicle units inched up 0.1%, while revenues fell 2% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,251, down from the prior-year quarter’s $2,277 but exceeding our estimate of $2,248 due to lower-than-expected cost of sales.
For the fiscal fourth quarter, wholesale vehicle revenues contracted 5.5% from the year-ago level to $974.3 million. The reported figure was below our projection of $1,134 million due to lower-than-anticipated units sold and ASP. Units sold decreased 4% to 115,546 (versus our forecast of 133,305), and the ASP dipped 3.2% to $8,034 (versus our estimate of $8,512). Wholesale vehicle GPU came in at $1,120, down from the year-ago period’s $1,187, but topped our estimate of $1,060 due to lower-than-expected cost of sales.
Other sales and revenues decreased 3.7% year over year to $154.7 million, which missed our estimate of $160 million. CarMax Auto Finance witnessed an 18.9% year-over-year rise in income to $147.3 million at the fiscal fourth-quarter end.
Other Tidbits
Selling, general and administrative expenses increased 1.4% from the prior-year quarter to $580 million. The firm had cash/cash equivalents and long-term debt of $574.1 million and $1.6 billion, respectively, as of Feb 29, 2024.
During the fiscal fourth quarter, CarMax repurchased shares worth $49.3 million. As of Feb 29, 2024, it had $2.36 billion remaining under the share repurchase authorization.
KMX operated 245 used car stores as of Feb 29, 2024. The company expects fiscal 2025 capex in the band of $500-$550 million.CarMax now targets to sell more than 2 million vehicles annually through its combined retail and wholesale channels by fiscal 2030.
KMX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
CarMax’s key peers include O’Reilly Automotive (ORLY - Free Report) , AutoZone (AZO - Free Report) and Advance Auto Parts (AAP - Free Report) .
O’Reilly reported fourth-quarter 2023 results on Feb 7. It reported adjusted EPS of $9.26, which beat the Zacks Consensus Estimate of $9.07. The bottom line also increased from $8.37 recorded in the prior-year quarter. Quarterly revenues of $3,832 million marginally missed the Zacks Consensus Estimate of $3,838 million but increased 5.2% year over year.ORLY had cash and cash equivalents of $279.1 million at the end of the fourth quarter, up from $108.6 million recorded at 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.
AutoZone released fourth-quarter fiscal 2024 results on Feb 27. Earnings of $28.89 per share increased 17.2% year over year and also surpassed the Zacks Consensus Estimate of $26.08 per share. Net sales grew 4.6% year over year to $3.86 billion. The top line marginally surpassed the Zacks Consensus Estimate of $3.85 billion.As of Feb 10, 2024, AutoZone had cash and cash equivalents of $304.1 million, up from $277.1 million as of Aug 26, 2023. Its total debt amounted to $8.63 billion as of Feb 10, 2024, higher than $7.67 billion as of Aug 26, 2023.
Advance Auto posted fourth-quarter 2023 results on Feb 28. The company incurred an adjusted loss of 59 cents per share against an adjusted earnings of $2.88 in the year-ago quarter. The reported figure was also in contrast to the Zacks Consensus Estimate of earnings of 24 cents per share. Net revenues of $2.46 billion missed the Zacks Consensus Estimate of $2.47 billion and also inched down 0.4% year over year. AAP had cash and cash equivalents of $503.5 million as of Dec 30, 2023, higher than $270.8 million on Dec 31, 2022. Total long-term debt was $1.79 billion as of Dec 30, 2023, up from $1.19 billion on Dec 31, 2022.