CarMax Group Earnings Cheat Sheet: Net Income Rise for Third Straight Quarter

S&P 500 (NYSE:SPY) component CarMax Group (NYSE:KMX) reported its results for the second quarter. CarMax Inc. is a retailer of used vehicles in the United States. The company also sells new vehicles under franchise agreements with Chrysler, General Motors, Nissan and Toyota.

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CarMax Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the auto dealership rose to $111.9 million (49 cents per share) vs. $107.9 million (48 cents per share) in the same quarter a year earlier. This marks a rise of 3.7% from the year earlier quarter.

Revenue: Rose 10.5% to $2.59 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: KMX fell short of the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $2.62 billion.

Quoting Management: “We are pleased with our ability to increase earnings despite the 2% decline in comparable store used unit sales,” said Tom Folliard, president and chief executive officer. “Our diversified business model enabled us to deliver the second highest quarterly earnings in our history, as the strength of our wholesale and finance operations offset the effect of softer used unit comps. We remain focused on continuing to expand our store base and drive execution and efficiencies.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 22.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 24.9% and in the fourth quarter of the last fiscal year, the figure rose 18.8%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 55 cents versus a mean estimate of net income of 47 cents per share.

Competitors to Watch: Copart, Inc. (NASDAQ:CPRT), America’s Car-Mart, Inc. (NASDAQ:CRMT), KAR Auction Services Inc (NYSE:KAR), AutoNation, Inc. (NYSE:AN), Penske Automotive Group, Inc. (NYSE:PAG), General Motors Company (NYSE:GM), Toyota Motor Corp. (NYSE:TM), Honda Motor CO., Ltd. (NYSE:HMC), Ford Motor Company (NYSE:F),¬†Group one Automotive, Inc. (NYSE:GPI), Sonic Automotive, Inc. (NYSE:SAH), NowAuto Group Inc (NAUG), Cambria Automobiles PLC (CAMB), and Turners Auctions Limited (TUA).

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(Source: Xignite Financials)