On Sept. 20, 2006, automotive dealership and Inside Value recommendation CarMax
- CarMax restated its results for last year's quarter to account for SFAS 123R (that's the new rules on accounting for stock options).
- It's always nice to see margins expand. That means the company is making a little more money on each sale today than it did yesterday.
- Cash flow from operations was down due to increased investments in working capital.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,855 |
$1,930 |
$1,634 |
18.1% |
|
Net Profit |
-- |
$54 |
$38 |
44.4% |
|
EPS |
$0.41 |
$0.50 |
$0.35 |
42.9% |
|
Diluted Shares |
108 |
106 |
1.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
13.13% |
12.77% |
0.36 |
|
Operating Margin |
4.66% |
3.73% |
0.93 |
|
Net Margin |
2.81% |
2.30% |
0.51 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Cash + ST Invest. | $24 | $42 | (43.1%) |
Accounts Rec. | $257 | $220 | 16.7% |
Inventory | $734 | $585 | 25.5% |
Liabilities | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Accounts Payable | $190 | $148 | 28.2% |
Long-Term Debt | $34 | $35 | (2.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q2 2007 | Q2 2006 | Change | |
|---|---|---|---|
Cash From Ops. | $87 | $117 | (25.6%) |
Capital Expenditures | $51 | $37 | 37.3% |
Free Cash Flow | $36 | $80 | (54.8%) |
Find out why Fools always follow the money.
Related Companies:
- AutoNation
(NYSE:AN) - Asbury Automotive Group
(NYSE:ABG) - Lithia Motors
(NYSE:LAD) - Group 1 Automotive
(NYSE:GPI)
Related Foolishness:
- Foolish Forecast: Reading CarMax's Manual
- CarMax Maxes Out Earnings
- Foolish Forecast: CarMax Pulls In
- CarMax Hits the Skids
Inside Value lead analyst Philip Durell thinks CarMax is a bargain. To find out why, come take a free trial of the newsletter.
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At the time of publication, David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.
