CarMax’s Flat Earnings Fall Short of Expectations

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By Trey Thoelcke Published
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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.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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