CarMax's Flat Earnings Fall Short of Expectations

CarMax Inc. (NYSE: KMX) this morning reported second-quarter earnings per share (EPS) of $0.48 on revenue of $2.76 billion. In the same period a year ago, the used car dealer reported EPS of $0.48 on revenue of $3.10 billion. Results compare to the Thomson Reuters consensus estimates for EPS of $0.52 and $2.75 billion in revenue.

Used unit sales in comparable stores increased 5% for the quarter and total used unit sales rose 8%. However, total wholesale unit sales declined 2% in the second quarter.

The company’s president and CEO pointed out:

Net earnings were flat, as the contributions from the growth in retail sales and CAF income were offset by higher SG&A costs, which were pressured by the ramp in our store growth rate, and the tough comparisons in our wholesale operations.

The company said it plans to open 10 superstores in fiscal 2013. That would double the number opened in fiscal 2012.

CarMax did not offer any third-quarter guidance, but the consensus estimate calls for $0.39 per share on sales of $2.45 billion.

Shares are up about 0.9% in premarket trading this morning, at $32.00 in a 52-week range of $22.77 to $35.17.