Latest news with #BillNash
Yahoo
2 hours ago
- Automotive
- Yahoo
CarMax's (NYSE:KMX) Q2 Earnings Results: Revenue In Line With Expectations, Stock Soars
Used automotive vehicle retailer Carmax (NYSE:KMX) met Wall Street's revenue expectations in Q2 CY2025, with sales up 6.1% year on year to $7.55 billion. Its GAAP profit of $1.38 per share was 18.3% above analysts' consensus estimates. Is now the time to buy CarMax? Find out in our full research report. Revenue: $7.55 billion vs analyst estimates of $7.57 billion (6.1% year-on-year growth, in line) EPS (GAAP): $1.38 vs analyst estimates of $1.17 (18.3% beat) Adjusted EBITDA: $300.1 million vs analyst estimates of $359.2 million (4% margin, 16.5% miss) Operating Margin: 3.1%, in line with the same quarter last year Free Cash Flow was $144 million, up from -$221.6 million in the same quarter last year Locations: 250 at quarter end, up from 245 in the same quarter last year Same-Store Sales rose 6.6% year on year (-6.1% in the same quarter last year, beat vs expectations of up 6.3%) Market Capitalization: $9.8 billion 'We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth. These results highlight the strength of our earnings growth model, which is underpinned by our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution,' said Bill Nash, president and chief executive officer. Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $26.79 billion in revenue over the past 12 months, CarMax is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. For CarMax to boost its sales, it likely needs to adjust its prices or lean into foreign markets. As you can see below, CarMax's sales grew at a tepid 6.1% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts). This quarter, CarMax grew its revenue by 6.1% year on year, and its $7.55 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, a slight deceleration versus the last six years. We still think its growth trajectory is satisfactory given its scale and suggests the market is baking in success for its products. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. CarMax sported 250 locations in the latest quarter. Over the last two years, it has opened new stores quickly, averaging 2.6% annual growth. This was faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. CarMax's demand has been shrinking over the last two years as its same-store sales have averaged 2% annual declines. This performance is concerning - it shows CarMax artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, CarMax's same-store sales rose 6.6% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum. We enjoyed seeing CarMax beat analysts' same-store sales and gross margin expectations this quarter. This led to nice EPS outperformance versus Wall Street's estimates. Overall, this was a solid quarter. The stock traded up 9.3% to $70.30 immediately after reporting. So should you invest in CarMax right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
7 hours ago
- Automotive
- Yahoo
CarMax's Q1 Sales Go Into Overdrive
CarMax saw a huge jump in sales, benefiting from a combination of rising momentum and the fact that used cars aren't subject to tariffs. CEO Bill Nash hailed the efforts the company has made to adopt technology and digital capabilities in order to take advantage of a highly fragmented market. CarMax is investing in capacity expansion to capitalize on demand. 10 stocks we like better than CarMax › Here's our initial take on CarMax's (NYSE: KMX) fiscal 2026 first-quarter financial report. Metric Q1 FY 2025 Q1 FY 2026 Change vs. Expectations Total revenue $7.11 billion $7.55 billion +6% Beat Adjusted earnings per share $0.97 $1.38 +42% Beat Retail used vehicle unit sales 211,132 230,210 +9% n/a Average used vehicle price $26,526 $26,120 -1.5% n/a There were a lot of good things to see in CarMax's financial report for the first quarter of its 2026 fiscal year. Total vehicle unit sales were up nearly 6% year over year, lifted by extremely strong performance on the retail side. Comparable store used unit sales were up 8.1% from the year-ago period, and total revenue from retail used vehicles climbed 7.5%. The company bought 336,000 vehicles from consumers and dealers during the quarter, up 7%, and revenue from the sale of extended protection plans on used vehicles got an 11% boost. The biggest news came on the bottom line. Earnings of $1.38 per share were up 42%, as CarMax largely kept cost increases in check. Expense management efforts played a key role, along with stronger gross profit figures on its retail sales. CarMax CEO Bill Nash put the results into perspective, noting that the latest quarter was the fourth consecutive period of positive retail comps and double-digit percentage gains in earnings per share. Nash attributed much of the gains to CarMax's workers and investment in technology, citing digital capabilities as supporting 80% of retail sales. Only 14% of sales occurred completely online, but the remainder used online channels to reserve, finance, trade in, or create a sales order for a vehicle. Investors reacted positively to the good news, sending CarMax shares up nearly 11% in the first hour of premarket trading after releasing its financial report on Friday morning. In particular, most of those following the used-car specialist had anticipated much less extensive growth in earnings. The bounce higher came as CarMax stock had been trading near its worst levels in two years. Fears about consumer sentiment had caused some to question whether buyers would step in to purchase CarMax vehicles. The results showed that despite macroeconomic pressures, consumers were prone to be opportunistic about making purchases even on terms that were attractive for CarMax. A couple of other notable things stood out in the report. First, CarMax opened two new stand-alone centers for auctions and vehicle reconditioning, one near Phoenix and the other near Dallas. These two facilities should help support relatively strong markets in those areas. Also, CarMax accelerated its stock repurchase activity, spending $200 million to buy back about 3 million shares. That leaves the company with $1.74 billion of unspent but authorized capacity to do future repurchases. Shareholders should see that as a reflection of CarMax's belief that attractive industry conditions could last quite a while into the future. Full earnings report Investor relations page Before you buy stock in CarMax, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CarMax wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarMax. The Motley Fool has a disclosure policy. CarMax's Q1 Sales Go Into Overdrive was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Automotive
- Yahoo
CarMax Profit Rises on Higher Revenue From Retail Used Vehicles
CarMax reported better-than-anticipated earnings as its retail vehicles sales increased. Revenue grew 6% year-over-year to $7.55 billion, although that was slightly short of forecasts. Retail vehicle unit sales climbed 9%, and revenue from those sales grew 7.5%.CarMax (KMX) shares gained Friday as the largest U.S. used car retailer posted better-than-expected profit as sales of retail vehicles increased even as prices declined. The company reported fiscal 2026 first-quarter earnings per share of $1.38 on revenue that grew 6% year-over-year to $7.55 billion. Analysts surveyed by Visible Alpha expected $1.17 and $7.57 billion, respectively. Retail vehicle revenue was up 7.5% to $6.10 billion, on a 9% gain in unit sales. Wholesale vehicle revenue fell 0.3% to $1.25 billion, although units sold were 1.2% higher. The average selling price for used vehicles dropped 1.5%, and they were down 1.7% for wholesale vehicles. Gross profit climbed 13% to $893.6 million, boosted by a 12% rise in retail unit gross profit. Wholesale unit gross profit fell 0.4%. CEO Bill Nash said the company benefited from "our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution." Despite today's 4% advance, shares of CarMax are down 18% year-to-date. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
9 hours ago
- Automotive
- Yahoo
Carmax Posts Higher Profit, Revenue
Carmax logged higher profit and sales in its fiscal first quarter as the company sold more cars, despite slightly lower prices. The Richmond, Va., used-car retailer on Friday posted a profit of $210.4 million for its three months ended May 31, compared with a profit of $152.4 million a year earlier. Quarterly earnings came in at $1.38 a share, topping the $1.16 a share that analysts polled by FactSet expected. Surging Silver Prices Prompt Americans to Empty Jewelry Boxes and Coin Jars Home Depot Bid Kicks Off Battle for $5 Billion Building-Products Company How Do You Build a $500 Million Coffee Chain? By Selling Matcha to Teens. The Real Message Andy Jassy Is Sending to Employees on AI Don't Fall in Love With AI, and Other Life Rules for Graduates Revenue rose 6.1% to $7.55 billion, just ahead of the $7.5 billion that analysts modeled. Combined retail and wholesale used-unit sales came in at 379,727, marking a 5.8% increase from the prior year's first quarter. Retail sales grew at a faster rate than wholesale. Same-store used-unit sales increased 8.1% from last year. The average selling prices of used and wholesale vehicles fell 1.5% and 1.7%, respectively, from last year, though this decrease was more than offset by higher sales volumes. Chief Executive Bill Nash said Carmax benefits from its customer-centric car-buying and selling experience: 'This is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share and deliver significant year-over-year earnings growth for years to come.' Shares rose 8.8%, to $69.99, in premarket trading. Write to Connor Hart at How Hackers Are Turning Tech Support Into a Threat SpaceX's Starship Explodes During Ground Test Oil Prices Rally, Stock Futures Fall in Holiday-Thinned Trading Food, Agriculture Leaders Sound Warnings on MAHA Overreach OpenAI Changes Price Structure for Business Version of ChatGPT Sign in to access your portfolio
Yahoo
11 hours ago
- Automotive
- Yahoo
CarMax shares surge on strong Q1 earnings beat
-- CarMax Inc. shares jumped 7.2% in premarket trading on Friday after the used car retailer reported first-quarter earnings that easily topped Wall Street expectations, driven by higher sales volumes and strong profit margins. The company reported earnings per share of $1.38 for the quarter ended May 31, beating analyst estimates of $1.19. Revenue rose 6.1% YoY to $7.55 billion, slightly above the $7.54 billion consensus forecast. Retail used vehicle unit sales increased 9% YoY to 230,210, with comparable store sales up 8.1%. Total gross profit climbed 12.8% to $893.6 million, helped by record high gross profit per retail used unit of $2,407. "We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth," said Bill Nash, CarMax (NYSE:KMX)'s president and CEO. "These results highlight the strength of our earnings growth model, which is underpinned by our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution." The company's strong performance came despite ongoing economic uncertainty. CarMax Auto Finance (CAF) income decreased 3.6% to $141.7 million as higher provisions for loan losses offset growth in CAF's net interest margin. CarMax accelerated its share repurchase program, buying back $199.8 million worth of stock during the quarter. The company had $1.74 billion remaining on its repurchase authorization as of May 31. Related articles CarMax shares surge on strong Q1 earnings beat The Middle East crises could end up offering a good buying opportunity: Barclays EXCLUSIVE: Dot Ai completes merger with SPAC ShoulderUp
