CarMax Inc. (NYSE:KMX) , headquartered in Richmond, VA, operates as a specialty retailer of used vehicles as well as new vehicles. The company is poised to benefit from its focus on the used-car market, which helps it to outperform the industry. CarMax is among the strongest operators in its peer group.
Furthermore, the company’s pursues an aggressive store growth policy, driven by improvements in the sales environment in the U.S. New stores help the company to penetrate into new markets and thus, boost its results. However, rising competition in the used-car market is highly challenging for the company.
Estimate Trend & Surprise History
Investors should note that the first-quarter fiscal 2017 earnings estimate for CarMax has decreased by a penny to 92 cents over last 7 days.
The company has delivered positive earnings surprises. It has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of around 0.85%. Thus investors have been eagerly awaiting CarMax latest earnings report.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
CarMax’ earnings increased 4.7% to 90 cents per share in the first quarter of fiscal 2017, missing the Zacks Consensus Estimate of 92 cents.
Revenues
CarMax reported revenues of $4.13 billion, up 2.8% year over year. However, revenues missed the Zacks Consensus Estimate of $4.22 billion.
Key Stats/Developments to Note
During the first quarter of fiscal 2017, CarMax opened 2 stores in new markets (one in Springfield, IL and one in San Francisco, CA). Subsequent to the end of the quarter, the company opened a store in El Paso, TX, market. In fiscal 2017, the company plan to open 15 stores.
Zacks Rank
Currently, CarMax has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released.
Market Reaction
CarMax’ shares decreased 5.1% to $48.05 following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on CarMax’ earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
CARMAX GP (CC) (KMX): Free Stock Analysis Report
Original post
Zacks Investment Research