CarMax Inc. (NYSE: KMX) released its fiscal first-quarter financial results before the markets opened on Friday. The company posted $1.33 in earnings per share (EPS) and $4.79 billion in revenue. Consensus estimates had called for $1.24 in EPS and revenue of $4.61 billion. The same period of last year reportedly had EPS of $1.13 and $4.54 billion in revenue.
During the quarter, total used unit sales rose by 1.6% from last year, while used comparable sales declined 2.3%. The comparable store sales performance primarily reflected lower store traffic, partially offset by improved conversion, as well as a tough comparison as the firm lapped its strongest prior year performance.
Total wholesale unit sales increased by 9.6%, largely driven by an increase in the appraisal buy rate and the growth in the store base.
Compared with last year’s first quarter, CarMax Auto Finance income increased 5.7% to $115.6 million. The increase reflected the combined effects of an 8.7% increase in average managed receivables and a slightly lower total interest margin percentage.
The company did not issue any guidance except to say that it plans to open 15 stores within the next 12 months. Consensus estimates from Thomson Reuters for the second quarter are $1.16 in EPS and $4.57 billion in revenue.
Bill Nash, president and CEO, kept it short and sweet:
While our comparable store unit sales performance improved significantly from the February 2018 quarter, we believe macro pricing factors still had some effect on our first quarter sales.
Shares of CarMax were last seen up about 13% at $80.61, with a consensus analyst price target of $74.60 and a 52-week trading range of $57.05 to $80.69.
24/7 Wall St.In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.