CarMax (NYSE: KMX ) reported earnings on June 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q1), CarMax met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Margins dropped across the board.
CarMax booked revenue of $2.77 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $2.81 billion on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $2.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.52. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS of $0.52 for Q1 were 5.5% lower than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.0%, 50 basis points worse than the prior-year quarter. Operating margin was 7.1%, 30 basis points worse than the prior-year quarter. Net margin was 4.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.74 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $10.65 billion. The average EPS estimate is $1.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 809 members out of 896 rating the stock outperform, and 87 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give CarMax a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CarMax is outperform, with an average price target of $37.69.
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