CarMax Earnings: Here’s Why Investors Like These Results

CarMax Inc. (NYSE:KMX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.7%.

CarMax Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 29.17% to $0.62 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 17.68% to $3.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CarMax Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company beat the mean analyst estimate of $0.57. It beat the average revenue estimate of $3.16 billion.

Quoting Management: “We are very pleased with our continued strong sales and earnings growth,” said Tom Folliard, president and chief executive officer. “The improvement was driven by several contributors, including double-digit growth in used and wholesale unit sales and CAF income.”

Key Stats (on next page)…

Revenue decreased 1.98% from $3.31 billion in the previous quarter. EPS decreased 3.13% from $0.64 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.46 and has not changed. For the current year, the average estimate has moved up from a profit of $2.16 to a profit of $2.19 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]