Written by StockNews.com

CarMax, Inc. (NYSE: KMX) early Thursday posted better than expected fiscal fourth quarter earnings results and unveiled its expansion plans for fiscal 2018.

The Richmond, VA-based used car dealer reported that:

  • Q4 earnings per share (EPS) were $0.81, which was $0.02 better than the Wall Street consensus estimate of $0.79.
  • Revenues rose 9.3% from last year to $4.05 billion, also beating analysts’ view for $3.94 billion.
  • Used car sales in comparable stores (“comps”) jumped 8.7% in the latest period, and 4.3% in the fiscal year. Comps are considered a key indicator of a retailer’s health, since they measure the year-over-year sales performance at established stores open at least 12 months.
  • Total used unit sales gained 13.4% in Q4, and 8.3% for the year.
  • Wholesale unit sales fell 1.2% in the fourth quarter and 0.7% in the fiscal year.
  • On a sour note, CarMax Auto Finance income plunged 10.2% to $82.9 million in Q4 and 5.9% to $369.0 million for the full year.

    • The company commented on its expansion plans via press release:

    “We currently plan to open 15 stores in fiscal 2018 and between 13 and 16 stores in fiscal 2019. Of the 15 stores we plan to open in fiscal 2018, 6 are in metropolitan statistical areas having populations of 600,000 or less, which we now define as small markets. We estimate capital expenditures will total approximately $325 million in fiscal 2018.”

    …Year-to-date, KMX had declined -12.00% prior to today’s report, versus a +5.49% rise in the benchmark S&P 500 index during the same period.

    KMX currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #5 of 15 stocks in the Auto Dealers & Rentals category.

    Print Friendly, PDF & Email

    Related Posts