Stock Market Watch

CarMax Reports Quarterly Results (KMX)

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CarMax IncCarMax Inc. (NYSE: KMX), the largest used car seller in the U.S., posted a better than expected quarterly profits as number of used cars sold rose for the first time in preceding three months.

While the net income Net income jumped up to $95 million, or 41 cents a share, from $88.8 million, or 39 cents a share, a year ago, the Company’s revenues also edged up 10% to $2.48 billion.


While used cars sold in the quarter climbed up 6 percent to 105,769 units, the number of wholesale vehicles sold rose 13 percent to 73,897 units in the same period.

The Company also said that it corrected its statements related to 2011 and 2012, to account for sale-leasebacks it entered into between 1995 and 2009. Accordingly, reported net earnings per share were diluted by 2 cents for both years.

CarMax’s business benefitted a lot during the recession as cash strapped U.S consumers looked for bargains. Nonetheless, the company could find it difficult to sustain the growth as rising prices of used cars, lower supply of the used vehicles and increasing competition from new cars dealers might slow down its business.

Headquartered in Richmond, Virginia, CarMax which competes with rivals like Car-Mart saw its same stores units sales increase by  4% in the fourth quarter even as its wholesale vehicle sales jumped by 18 percent.

According to survey by Thomson Reuters, analysts were expecting a profit of 40 cents a share on a profit of $.41 billion.

The company’s shares valued at about $7.91 billion, closed at $34.92 on Wednesday on the New York Stock Exchange.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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