CarMax Sees Slight Growth in Fiscal 3Q
Used vehicle seller CarMax Inc. (NYSE:KMX) reported a growth of 0.4% in its fiscal third quarter earnings which came in at $82.8 million, up just marginally from $82.4 million a year earlier. Revenues, however, were up 6.7% to $2.26 billion, though earnings per share remained unchanged at 36 cents. Analysts had expected revenues at $2.25 billion and earnings of 38 cents a share.
On the other performance metrics, gross margins were down to 13.4% from 14.1%; used vehicles sales were up 4.6% while new vehicles were down 3.6%; wholesale sales jumped 22% with same-store vehicles rising 3%. The auto-financing division was a bright spot with profits up 12%.
The company’s sales may be taking a pause after the hectic growth in double digits witnessed over the last two years, ascribed to the gloomy economic scenario pushing up demand, and prices, for used cars. The results are also seeing the effect of cost-cutting efforts by the company.
Here’s how CarMax shares are trading on earnings: