We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CarMax Inc. (KMX - Free Report) posted earnings per share of 81 cents in the fourth quarter of fiscal 2017 (ended Feb 28, 2017), highlighting an increase of 14.1% from 71 cents earned a year ago. Earnings surpassed the Zacks Consensus Estimate of 79 cents as well.
Net sales and operating revenues in the reported quarter rose 9.3% year over year to $4.05 billion. Moreover, the figure also surpassed the Zacks Consensus Estimate of $3.97 billion.
Used vehicle revenues appreciated 11.7% to $3.45 billion in the reported quarter, driven by higher unit sales, which increased 13.4% to 176,017 vehicles. Comparable-store used vehicle unit sales inched up 8.7% in the quarter on improved conversion and increase in store traffic.
Wholesale vehicle revenues dropped 7.9% to $465.9 million in the quarter. Unit sales fell 1.2% to 91,143 vehicles. Average selling price of wholesale vehicles went down 6.8% to $4,910.
Other sales and revenues increased 19.2% to $133.8 million. Its extended protection plan (EPP) revenues grew 19.3% to $84 million.
Gross profit improved 14.9% to $562.2 million from $489.3 million in the year-ago quarter.
Full Year Fiscal 2017
For full-year fiscal 2017, CarMax posted earnings per share of $3.26, an increase of 7.6% from $3.03 earned a year ago. However, earnings missed the Zacks Consensus Estimate of $3.28.
Net sales and operating revenues in the reported quarter rose 4.8% year over year to $15.88 billion. Moreover, the figure surpassed the Zacks Consensus Estimate of $15.83 billion.
CAF reported a 10.2% decrease in income to $82.9 million in fourth-quarter fiscal 2017 from $92.3 million a year ago. This resulted from an increase in the provision for loan losses as well as an update to determine the loan loss allowance.
Store Openings
During the fourth quarter of fiscal 2017, CarMax opened four stores. Two of them were opened in new markets (one in Mobile, AL, and the other in Albany, NY) and the other two were opened in the existing markets (both in Los Angeles, CA). In fiscal 2017, the company opened 15 stores.
The company plans to open another 15 stores in fiscal 2018. It also intends to open 13–16 superstores in fiscal 2019.
Share Repurchase Program
During the quarter under review, CarMax spent $101.1 million to repurchase 1.5 million shares under its existing share buyback program. In the full fiscal year, the company purchased 10.3 million shares for $557.7 million. As of Feb 28, 2017, the company had $1.59 billion of authorization remaining under its share repurchase program.
Financial Position
CarMax had cash and cash equivalents of $38.4 million as of Feb 28, 2017, up from $37.4 million as of Feb 29, 2016. Long term debt rose to $952.6 million as of Feb 28, 2017, from $713.9 million as of Feb 29, 2016.
In fiscal 2017, CarMax had a cash outflow of $468.1 million from operations, compared with $148.9 million in the prior-year period. Capital expenditures totaled $418.1 million in fiscal 2017, up from $315.6 million a year ago. Meanwhile, the company projects capital expenditures of around $325 million for fiscal 2018.
Price Performance
In the last three months, the company’s shares have lost 13.1% while the Zacks categorized Retail/Wholesale-Auto Parts industry saw a 12.2% decrease.
Zacks Rank & Key Picks
CarMax currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term expected growth rate of 11%.
American Axle has a long-term expected growth rate of 8.1%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
CarMax (KMX) Q4 Earnings Rise 14.1% Y/Y, Tops Estimates
CarMax Inc. (KMX - Free Report) posted earnings per share of 81 cents in the fourth quarter of fiscal 2017 (ended Feb 28, 2017), highlighting an increase of 14.1% from 71 cents earned a year ago. Earnings surpassed the Zacks Consensus Estimate of 79 cents as well.
Net sales and operating revenues in the reported quarter rose 9.3% year over year to $4.05 billion. Moreover, the figure also surpassed the Zacks Consensus Estimate of $3.97 billion.
Used vehicle revenues appreciated 11.7% to $3.45 billion in the reported quarter, driven by higher unit sales, which increased 13.4% to 176,017 vehicles. Comparable-store used vehicle unit sales inched up 8.7% in the quarter on improved conversion and increase in store traffic.
Wholesale vehicle revenues dropped 7.9% to $465.9 million in the quarter. Unit sales fell 1.2% to 91,143 vehicles. Average selling price of wholesale vehicles went down 6.8% to $4,910.
Other sales and revenues increased 19.2% to $133.8 million. Its extended protection plan (EPP) revenues grew 19.3% to $84 million.
Gross profit improved 14.9% to $562.2 million from $489.3 million in the year-ago quarter.
Full Year Fiscal 2017
For full-year fiscal 2017, CarMax posted earnings per share of $3.26, an increase of 7.6% from $3.03 earned a year ago. However, earnings missed the Zacks Consensus Estimate of $3.28.
Net sales and operating revenues in the reported quarter rose 4.8% year over year to $15.88 billion. Moreover, the figure surpassed the Zacks Consensus Estimate of $15.83 billion.
CarMax Inc Price, Consensus and EPS Surprise
CarMax Inc Price, Consensus and EPS Surprise | CarMax Inc Quote
CarMax Auto Finance (CAF)
CAF reported a 10.2% decrease in income to $82.9 million in fourth-quarter fiscal 2017 from $92.3 million a year ago. This resulted from an increase in the provision for loan losses as well as an update to determine the loan loss allowance.
Store Openings
During the fourth quarter of fiscal 2017, CarMax opened four stores. Two of them were opened in new markets (one in Mobile, AL, and the other in Albany, NY) and the other two were opened in the existing markets (both in Los Angeles, CA). In fiscal 2017, the company opened 15 stores.
The company plans to open another 15 stores in fiscal 2018. It also intends to open 13–16 superstores in fiscal 2019.
Share Repurchase Program
During the quarter under review, CarMax spent $101.1 million to repurchase 1.5 million shares under its existing share buyback program. In the full fiscal year, the company purchased 10.3 million shares for $557.7 million. As of Feb 28, 2017, the company had $1.59 billion of authorization remaining under its share repurchase program.
Financial Position
CarMax had cash and cash equivalents of $38.4 million as of Feb 28, 2017, up from $37.4 million as of Feb 29, 2016. Long term debt rose to $952.6 million as of Feb 28, 2017, from $713.9 million as of Feb 29, 2016.
In fiscal 2017, CarMax had a cash outflow of $468.1 million from operations, compared with $148.9 million in the prior-year period. Capital expenditures totaled $418.1 million in fiscal 2017, up from $315.6 million a year ago. Meanwhile, the company projects capital expenditures of around $325 million for fiscal 2018.
Price Performance
In the last three months, the company’s shares have lost 13.1% while the Zacks categorized Retail/Wholesale-Auto Parts industry saw a 12.2% decrease.
Zacks Rank & Key Picks
CarMax currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term expected growth rate of 11%.
American Axle has a long-term expected growth rate of 8.1%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>