CarMax Earnings: Here’s Why Shares are Down Now

CarMax Inc. (NYSE:KMX) delivered a profit and met 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 down 0.43%.

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CarMax Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.2% to $0.46 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Rose 14.3% to $2.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CarMax Inc. reported adjusted EPS income of $0.46 per share. By that measure, the company met the mean analyst estimate of $0.46. It beat the average revenue estimate of $2.73 billion.

Quoting Management: “We are pleased to report solid increases in used and wholesale vehicle unit sales and CAF income, which allowed us to achieve record earnings for both the fourth quarter and the fiscal year,” said Tom Folliard, president and chief executive officer. “We believe our long-term focus on developing associates, enhancing the customer experience, driving efficiencies, and building our store base continues to drive great results.”

Key Stats (on next page)…

Revenue increased 8.74% from $2.6 billion in the previous quarter. EPS increased 12.2% from $0.41 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 $0.56 and has not changed. For the current year, the average estimate has moved up from a profit of $1.86 to a profit of $1.87 over the last ninety days.

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