- Net sales & operating revenue for CarMax in Q2 2024 were $7.01 billion, slightly down by 0.9% year-over-year (y/y), but they beat the estimate of $6.82 billion.
- Used vehicle sales reached $5.68 billion, an increase of 1.5% y/y, exceeding the estimate of $5.44 billion.
- Wholesale vehicle sales were $1.15 billion, down by 13% y/y, just below the estimate of $1.2 billion.
- Other sales amounted to $182.0 million, surpassing the estimate of $168.8 million.
- Extended protection plan revenues were $121.4 million, a significant rise of 19% y/y, beating the estimate of $108.4 million.
- Third-party finance income recorded $1.4 million, compared to a loss of $1.50 million y/y, and well above the estimated loss of $1.84 million.
- EPS stood at 85 cents, up from 75 cents y/y.
- Used vehicle gross profit was $478.8 million, up by 5.9% y/y, exceeding the estimate of $465.1 million.
- Wholesale vehicle gross profit was $137.9 million, a slight increase of 1% y/y, close to the estimate of $140.1 million.
- Bill Nash, president and CEO, commented on the continued improvement of the business in the second quarter.
- Nash highlighted growth in retail used unit sales, strong margins, effective management of SG&A, and double-digit earnings growth.
- Analyst ratings: 12 buys, 5 holds, and 3 sells.
Carmax Inc on Smartkarma
Analyst coverage on Carmax Inc. by Baptista Research on Smartkarma has highlighted key insights into the company’s operations and strategies.
In their report titled “CarMax Inc.: Operational Efficiencies In Reconditioning & Logistics Expanding The Bottom-Line? – Major Drivers,” Baptista Research analyzes CarMax’s fiscal 2025 first quarter results. The report presents a balanced view of the financial scenario, emphasizing positive trends such as stabilized vehicle values and decreased average selling prices, despite certain challenges.
Another report by Baptista Research, “CarMax Inc: How Are They Embracing Generative AI For Improving Efficiency & Strategic Expansion? – Major Drivers,” examines CarMax’s Q3 fiscal year 2024 results. The analysis focuses on the company’s strategic plan that has driven improvements across key areas for four consecutive quarters, despite a decline in total sales due to market factors.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| 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 Smartkarma Smart Score breakdown indicating its long-term outlook. The company received a solid score of 4 for Momentum, highlighting positive market momentum and investor interest. This could suggest a good performance trend in the future. However, other key factors such as Value, Growth, Resilience, and Dividend scored lower, ranging from 1 to 3. This mixed score suggests that while CarMax Inc is showing strong momentum, there are some areas where it may need to improve for long-term sustainability.
CarMax, Inc. operates as a retailer of used cars and light trucks across the United States. With a mixed Smartkarma Smart Score, including a standout Momentum score of 4, the company shows promising market traction. Despite lower scores in Value, Growth, Resilience, and Dividend, CarMax Inc’s ability to capitalize on its momentum could drive future success as it continues to expand its retail presence and offerings in the used vehicle market.
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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