Nöbetçi Eczaneler
CarMax Inc. Shares Surge Following Impressive Earnings Report
Shares of CarMax Inc. climbed 7.2% in pre-market trading on Friday after the used-car retailer announced first-quarter earnings that significantly surpassed Wall Street forecasts, driven by increased sales volumes and robust profit margins. The company reported earnings of $1.38 per share for the quarter ending May 31, exceeding analysts’ predictions of $1.19 per share. Revenue increased by 6.1% year-over-year to $7.55 billion, just above the consensus estimate of $7.54 billion.
Retail used vehicle sales rose 9% compared to the previous year, reaching 230,210 units. Comparable store sales saw an increase of 8.1%. Total gross profit climbed 12.8% to $893.6 million, bolstered by a record gross profit of $2,407 per retail used vehicle.
Bill Nash, president and CEO of CarMax (NYSE:KMX), commented: “For the fourth consecutive quarter, we have achieved positive retail comparable sales and double-digit annualized earnings per share growth. These outcomes highlight the strength of our earnings growth model, which is supported by the industry’s premier omnichannel experience, the diversity of our business, and our commitment to execution.”
Despite ongoing economic uncertainty, the company’s strong performance remained undeterred. Revenue from CarMax Auto Finance (CAF) decreased 3.6% to $141.7 million, as provisions for loan losses offset the growth in CAF’s net interest margin.
CarMax also ramped up its share repurchase program, buying back $199.8 million worth of shares during the quarter. As of May 31, the company had $1.74 billion remaining in its buyback authorization.
