CarMax Beats on Both Top and Bottom Lines
CarMax (NYS: KMX) reported earnings Thursday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q4), CarMax beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, and net margins shrank.
CarMax logged revenue of $2.48 billion. The 13 analysts polled by S&P Capital IQ expected to see revenue of $2.41 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $2.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS of $0.41 for Q4 were 5.1% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.9%, 30 basis points worse than the prior-year quarter. Operating margin was 6.3%, 20 basis points better than the prior-year quarter. Net margin was 3.7%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.85 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $10.82 billion. The average EPS estimate is $1.95.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 812 members rating the stock outperform and 87 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 288 give CarMax a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CarMax is outperform, with an average price target of $35.93.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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