CarMax Company Earnings Shine
CarMax Inc. (NYSE: KMX) reported first-quarter fiscal 2014 results before markets opened this morning. The used-car retailer reported quarterly diluted earnings per share (EPS) of $0.64 on revenues of $3.31 billion. In the same period a year ago, CarMax reported EPS of $0.52 on revenue of $2.77 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.58 and $3.15 billion in revenue.
The company did not offer guidance, but consensus second-quarter estimates call for EPS of $0.54 on revenues of $3.09 billion. For the full year, consensus estimates call for EPS of $2.09 on revenues of $12.23 billion. Perhaps today's conference call will cover the company's forecast for the rest of this fiscal year.
The company's CEO said:
We are very pleased to report our strongest increase in comparable store used unit sales in several years. Strong retail sales growth, together with continued contributions from [CarMax Auto Finance] and wholesale drove all-time record quarterly revenues and earnings.
Same-store sales of used vehicles rose 17% year-over-year, which the company attributed to improvements in execution and "an attractive consumer credit environment." The company's auto finance group posted a profit gain of 16% year-over-year.
CarMax shares are up 4.8% in premarket trading this morning to $46.71, in a 52-week range of $24.83 to $48.86. Thomson Reuters had a consensus analyst price target of around $48.30 before today's results were announced.
Filed under: Autos Tagged: KMX