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CarMax's (KMX) Q3 Earnings Beat Estimates, Rise 14.3% Y/Y

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CarMax Inc. (KMX - Free Report) , headquartered in Richmond, VA, operates as a specialty retailer of used vehicles as well as new vehicles. The company is poised to benefit from its focus on the used-car market, which helps it to outperform the industry. CarMax is among the strongest operators in its peer group.

Furthermore, the company’s pursues an aggressive store growth policy, driven by improvements in the sales environment in the U.S. New stores help the company to penetrate into new markets and thus, boost its results. However, rising competition in the used-car market is highly challenging for the company.

Estimate Trend & Surprise History

Investors should note that the third quarter (ended Nov 30, 2016) of fiscal 2017 earnings estimates for CarMax have been stable over the past week and month.

The company has delivered mixed earnings surprises. It has missed the Zacks Consensus Estimate in 2 of the trailing 4 quarters with an average miss of around 1.32%.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings

CarMax’ earnings increased 14.3% to 72 cents per share in the third quarter of fiscal 2017, surpassing the Zacks Consensus Estimate of 71 cents.
 

CARMAX GP (CC) Price and EPS Surprise

 

CARMAX GP (CC) Price and EPS Surprise | CARMAX GP (CC) Quote

Revenues

CarMax reported revenues of $3.7 billion, up 4.4% year over year. However, revenues missed the Zacks Consensus Estimate of $3.8 billion.

Key Stats/Developments to Note

During the third quarter of fiscal 2017, CarMax opened 6 stores. 2 stores were opened in new markets (one in Boise, ID, and one in Grand Rapids, MI) and 4 stores were opened in the existing markets one store each in Daytona, FL, and Philadelphia, PA, and two stores in San Francisco, CA). In fiscal 2017, the company plan to open 15 stores.

Zacks Rank

CarMax currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released. Meanwhile, you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Market Reaction

CarMax’ shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on CarMax’ earnings report!

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