CarMax Falls Despite Top-Line Beat
CarMax reported its fiscal fourth-quarter financial results before the markets opened on Thursday.
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CarMax Inc. (NYSE: KMX) reported its fiscal fourth-quarter financial results before the markets opened on Thursday. The company posted $0.71 in earnings per share (EPS) on $3.71 in revenue, which compares to consensus estimates from Thomson Reuters of $0.71 in EPS on revenue of $3.68 billion. In the same period of last year, it posted EPS of $0.67 and $3.51 billion in revenue.
Net sales and operating revenues increased 5.5%, while used unit sales in comparable stores increased 0.7%. Total used unit sales rose 4.0%.
CarMax Auto Finance (CAF) income increased 2.2% to $92.3 million in the fourth quarter.
The company plans to open 15 stores in fiscal 2017.
During the fourth quarter, the company repurchased 3.0 million shares of common stock for $155.8 million. For the fiscal year, CarMax repurchased 16.3 million shares for a total of $971.2 million. At the end of February, the company had $1.40 billion remaining available for repurchase under the program.
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Tom Folliard, CEO of CarMax, commented:
While we faced a somewhat more challenging sales environment in the second half of the year, we delivered solid revenue and EPS growth in both the fourth quarter and the fiscal year, we opened a record number of stores and we made progress toward optimizing our capital structure by buying back 16.3 million shares in fiscal 2016.
On the books, cash and cash equivalents totaled $37.4 million, compared to $27.6 million in the same period of last year.
Shares of CarMax traded down 6% at $50.09 on Thursday, with a consensus analyst price target of $62.35 and a 52-week trading range of $41.25 to $74.55.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
