Advertisement
Canada markets open in 22 minutes

  • S&P/TSX

    21,871.96
    +64.59 (+0.30%)
     

  • S&P 500

    5,010.60
    +43.37 (+0.87%)
     

  • DOW

    38,239.98
    +253.58 (+0.67%)
     

  • CAD/USD

    0.7301
    -0.0000 (-0.01%)
     

  • CRUDE OIL

    81.08
    -0.82 (-1.00%)
     

  • Bitcoin CAD

    90,520.89
    -113.69 (-0.13%)
     

  • CMC Crypto 200

    1,419.27
    +4.51 (+0.32%)
     

  • GOLD FUTURES

    2,324.60
    -21.80 (-0.93%)
     

  • RUSSELL 2000

    1,967.47
    +19.82 (+1.02%)
     

  • 10-Yr Bond

    4.6440
    +0.0210 (+0.45%)
     

  • NASDAQ futures

    17,422.25
    +72.25 (+0.42%)
     

  • VOLATILITY

    16.53
    -0.41 (-2.42%)
     

  • FTSE

    8,033.47
    +9.60 (+0.12%)
     

  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     

  • CAD/EUR

    0.6842
    -0.0008 (-0.12%)
     
MARKETS LIVE BLOG:

STOCK FUTURES CLIMB AS RESULTS SEASON KICKS INTO HIGH GEAR

Tech-focused investors prepare for fresh wave of earnings highlighted by struggling Tesla

CarMax (KMX) Earnings Surpass Estimates in Q1, Rise Y/Y

Zacks Equity Research

CarMax Inc. KMX has posted net earnings per share of $1.59 in first-quarter fiscal 2020 (ended May 31, 2019), up 19.5% from $1.33 in the year-ago period. Moreover, earnings surpassed the Zacks Consensus Estimate of $1.49. The company’s net earnings increased 11.8% year over year to $266.7 million.

Moreover, net sales and operating revenues in the reported quarter increased 12% year over year to $5.37 billion. The figure beat the Zacks Consensus Estimate of $5.22 billion. Total gross profit rose 12.3% year over year to $742.4 million.

In first-quarter fiscal 2020, CarMax’s used-vehicle sales rose 12.9% from the prior-year period to $4.54 billion as units sold increased 13% to 224,268 vehicles. The average selling price of used vehicles declined 0.1% from the year-ago quarter to $20,050. Comparable store used-vehicle units sold rose 9.5% from the prior-year level. This robust performance reflects improved conversion and solid growth in web traffic.

Wholesale vehicle revenues rose 7.3% from a year ago to $662.4 million in the reported quarter. Units sold increased 6.6% year over year to 120,768 vehicles, courtesy of growth in store base and appraisal buy rate. The average selling price of wholesale vehicles rose 0.2% from the prior-year quarter to $5,213.

Other sales and revenues increased 6.1% year over year. Moreover, the extended protection plan’s (EPP) revenues rose 11.2% from the year-ago level.

CarMax Auto Finance (“CAF”) reported a year-over-year increase of 0.3% in income to $116 million in the quarter under review, reflecting collective effects of 7.9% rise in average managed receivables and a slightly lower total interest margin percentage.

CarMax, Inc. Price, Consensus and EPS Surprise

 

CarMax, Inc. Price, Consensus and EPS Surprise
CarMax, Inc. Price, Consensus and EPS Surprise

CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote

ADVERTISEMENT

Store Openings

In first-quarter fiscal 2020, CarMax opened three stores, including two in new television markets — Waco, TX, and McAllen, TX, and one in the existing market (Memphis, TN).

Share Repurchase Program

In the quarter under review, the company spent $204.8 million to repurchase 3 million shares under the existing share buyback program. As of May 31, 2019, it had $1.91 billion of authorization remaining under its share repurchase program.

Financial Position

CarMax had cash and cash equivalents of $42.2 million as of May 31, 2019, down from $76.3 million in the corresponding period of 2018. Long-term debt (excluding current position) amounted $1.49 billion as of May 31, 2019, reflecting an increase from $1.29 billion in the year-ago comparable period.

Zacks Rank & Stocks to Consider

CarMax currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Ford Motor Company F, Fox Factory Holding Corp. FOXF and Cummins Inc. CMI, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ford has an expected long-term growth rate of 7.3%. Over the past six months, shares of the company have gained 31.6%.

Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 46.2%.

Cummins has an expected long-term growth rate of 8%. Over the past six months, shares of the company have gained 36.7%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CarMax, Inc. (KMX) : Free Stock Analysis Report
 
Ford Motor Company (F) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
Cummins Inc. (CMI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research