- CarMax’s 3Q net sales and operating revenue came in at $6.15 billion, marking a decrease of 5.5% compared to the same period last year.
- The company’s net sales and operating revenue fell short of the estimated $6.29 billion.
- Used vehicle sales amounted to $4.83 billion, showing a decrease of 7.2% year-on-year (y/y).
- The estimated sales for used vehicles were $4.97 billion, which CarMax failed to meet.
- On the other hand, wholesale vehicle sales increased by 1.1% y/y to reach $1.17 billion, surpassing the estimated $1.14 billion.
- Earnings per share (EPS) were 52 cents, more than double as compared to 24 cents y/y.
- Revenues from extended protection plan were $90.8 million, a slight decrease of 1.1% y/y, and slightly below the estimated $92.1 million.
- Third-party finance fees stood at $1.2 million, compared to a profit of $1.0 million y/y. This figure exceeded the estimated profit of $0.86 million.
- Used vehicle gross profit was $397.9 million, a decrease of 1.2% y/y, and below the estimated $404.8 million.
- Wholesale vehicle gross profit, however, increased by 7.1% y/y to $122.9 million, surpassing the estimated $120.7 million.
- The company stock was rated as ‘buy’ by 9 analysts, ‘hold’ by 7, and ‘sell’ by 4.
Carmax Inc on Smartkarma
According to research from Smartkarma’s independent analyst network, Baptista Research has released a bullish report on CarMax Inc. The report, titled “CarMax Inc.: Unveiling 4 Strategic Moves Propelling Future Success Amid Market Chaos! – Major Drivers“, examines the company’s strategic actions that have yielded positive outcomes and positioned it for future success. The report notes that CarMax Inc. delivered a mixed result in the recent quarter, with revenues above market expectations but failed to surpass the analyst consensus regarding earnings.
The report also highlights CarMax’s diversified business model, which generated total sales of $7.1 billion despite ongoing challenges in the market. With its strategic actions, CarMax Inc. is well-positioned for future success. Investors interested in learning more about CarMax Inc. can access the report from Smartkarma’s independent analyst network.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Carmax Inc has a long-term outlook that is generally positive. The company’s Value score of 3 indicates that it is a good value for investors, and its Growth score of 3 suggests that it has a healthy rate of growth. The company’s Momentum score of 3 also suggests that it is likely to continue to perform well in the future. However, its Dividend score of 1 shows that it is not a great dividend stock, and its Resilience score of 2 indicates that it may not fare well in times of economic downturns. Overall, Carmax Inc is a retail used car and light truck seller that has a positive long-term outlook.
CarMax, Inc. sells at retail used cars and light trucks. The company purchases, reconditions, and sells used vehicles in its superstores and franchises throughout the United States. While the company’s Dividend score of 1 does not make it a great dividend stock, its Value, Growth, and Momentum scores of 3 each suggest that it is a good value for investors, has a healthy rate of growth, and is likely to continue to perform well in the future. Additionally, its Resilience score of 2 indicates that it may not fare well in times of economic downturns. Overall, Carmax Inc has a positive long-term outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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