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Wednesday, June 21, 2017

CarMax (KMX) reported earnings on Wed 21 June 2017 (b/o)

** charts before earnings **



  




** charts after earnings **


CarMax beats by $0.14, beats on revs :
  • Reports Q1 (May) earnings of $1.13 per share, $0.14 better than the Capital IQ Consensus of $0.99; revenues rose 10.1% year/year to $4.54 bln vs the $4.46 bln Capital IQ Consensus.
  • Used unit sales in comparable stores increased 8.2%, total used unit sales rose 14.1%.
    • The comparable store sales performance reflected continued solid improvement in conversion resulting from strong execution by store teams and digital initiatives. They believe first quarter used unit sales also benefited somewhat from the delay of federal income tax refunds in February, which shifted some sales from the fourth quarter of last year into this year's first quarter. Their third-party Tier 3 sales mix declined modestly to 10.0% of used unit sales versus 11.2% in last year's first quarter, as we began to lap credit tightening by one of our Tier 3 finance providers implemented during the first quarter of last year.
    • Wholesale vehicle unit sales were flat compared with the first quarter of fiscal 2017, as contributions from the growth in store base were offset by a reduction in appraisal traffic. In particular, age 7-to 9-year old wholesale vehicles continued to be in shorter supply.
  • CarMax Auto Finance income increased 8.5% to $109.4 million.
  • Total gross profit increased 13.3% versus last year's first quarter, to $648.9 million.
  • During the first quarter opened three stores, including two stores in Seattle, Washington, a new television market, and one store in Pensacola, Florida.
  • Repurchased 3.0 million shares of common stock for $182.1 million pursuant to share repurchase program. As of May 31, 2017, they had $1.41 billion remaining available for repurchase under the program.

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