When CarMax Inc. (NYSE: KMX) released its fiscal third-quarter earnings report before the markets opened on Tuesday, the company posted $0.72 in earnings per share (EPS) and $3.7 billion in revenue. Consensus estimates from Thomson Reuters called for $0.70 in EPS and revenue of $3.75 billion. In the same period of last year, CarMax reported EPS of $0.63 and $3.54 billion in revenue.
CarMax also posted used unit sales in comparable stores as 5.4%, with total used unit sales rising about 9.1%. The comparable store sales performance resulted from increases in both conversion and store traffic.
At the same time, wholesale unit sales declined 2.2% as contributions from the growth in its store base and an improved appraisal buy rate were more than offset by a reduction in appraisal traffic.
CarMax Auto Finance (CAF) income declined 3.2% to $89.4 million. The decline was due primarily to an $11.0 million increase in the provision for loan losses, which resulted from both higher loss experience in recent quarters and the growth in managed receivables.
During the third quarter of fiscal 2017, CarMax repurchased 3.8 million shares of common stock for $198.7 million, according to its share repurchase program. At the end of the quarter, the company had $1.69 billion remaining available for repurchase under the program.
So far in 2016, CarMax has outperformed the broad markets, with the stock up about 18%.
Shares of CarMax were trading up about 3.9% at $64.77 on Tuesday, with a consensus analyst price target of $62.87 and a 52-week trading range of $41.25 to $64.88.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
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.