CarMax Inc. (NYSE: KMX) reported its fiscal first-quarter financial results before the markets opened on Tuesday. The company said that it had $0.90 in earnings per share (EPS) on $4.13 billion in revenue. Consensus estimates from Thomson Reuters were $0.92 in EPS on revenue of $4.19 billion. In the same period of last year, it posted EPS of $0.86 and $4.01 billion in revenue.
The comparable store used unit sales rose 0.2% compared to the prior year’s first quarter. The comparable store sales performance reflected the combination of an improvement in conversion that more than offset a decrease in store traffic.
Wholesale vehicle unit sales grew 1.8% versus the first quarter of fiscal 2016, primarily driven by the growth in our store base.
Total gross profit increased 5.3% versus last year’s first quarter to $572.6 million. Used vehicle gross profit rose 4.1%, driven by the 4.0% increase in total used unit sales.
Compared with last year’s first quarter, CarMax Auto Finance income declined 7.7% to $100.8 million. The decline was due to an increase in the provision for loan losses and a lower total interest margin percentage, partially offset by the effects of an increase in average managed receivables.
On the books, CarMax’s cash and cash equivalents totaled $52.6 million at the end of the quarter, compared to $351.7 million at the end of the same period of last year.
Shares of CarMax closed Monday up 1% at $50.63, with a consensus analyst price target of $60.81 and a 52-week trading range of $41.25 to $69.15. Following the release of the earnings report, the stock was down 4.5% at $48.35 in Tuesday’s premarket.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
