CarMax Group First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CarMax Group (NYSE:KMX) will unveil its latest earnings on Wednesday, June 22, 2011. 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.

CarMax Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of 47 cents per share, a rise of 6.8% from the same quarter a year ago. Estimates range from profit of 44 cents per share to net income of 49 cents per share. Over the past three months, the consensus estimate has moved down from 48 cents. Over the past month, the consensus estimate has moved down from 48 cents. For the year, analysts are projecting profit of $1.79 per share, a rise of 7.8% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 38 cents per share versus a mean estimate of profit of 34 cents per share. In the third quarter, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.54 billion in revenue this quarter, a rise of 12.4% from the year ago quarter. Analysts are forecasting total revenue of $9.92 billion for the year, from last year’s revenue of $8.98 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy and none rating it as a sell. While the average rating for the stock remains a moderate buy, the strength of the rating has dwindled over the past three months.

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past four quarters. Over that span, the company has averaged growth of 20.4%, with the biggest boost coming in the first quarter when revenue rose 23.3% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 18.8% while it rose 10.4% in the third quarter and 4.8% in the second quarter.

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), Group one Automotive, Inc. (NYSE:GPI), Ford Motor Company (NYSE:F), General Motors (NYSE:GM), Toyota Motor (NYSE:TM) and Sonic Automotive, Inc. (NYSE:SAH).

Stock Price Performance: The stock price saw one of its best stretches over the last year between September 17, 2010 and September 30, 2010 when shares rose for 10-straight days, rising 17.8% (+$4.21) over that span. It saw one of its worst periods between June 1, 2011 and June 8, 2011 when shares fell for six-straight days, falling 7.4% (-$2.13) over that span.

(Source: Xignite Financials)

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