CarMax’s revenue surpassed the Street's expectations. Its earnings, however, fell short of analysts’ estimates.
The used-car retailer ‘s third-quarter revenue increased +11.5% year-over-year to $4.79 billion, exceeding analysts’ estimate of $4.68 billion.
Same-store sales climbed +7.5%, beating analysts' expectation of +6.2% . Strong conversion, bolstered by continued support from third-party lending partners, web traffic growth, and a favorable response to consumer initiatives boosted the results.
Used vehicle sales rose +13.6% to $4.03 billion, which is higher than analysts’ estimate of $3.97 billion. Wholesale vehicle sales increased +1.2%, missing expectations of $625.5 million.
Earnings for the quarter came in at $1.04 a share, missing analysts’ forecast of $1.14. The figure was also lower from the year-ago quarter’s $1.09 a share. Bill Nash, president and CEO, indicated that the earnings decline was largely due to higher stock-based compensation expense, reflecting an increasing share price and an increase in third-quarter advertising expense related to the company’s omni-channel launch and the roll-out of a new national advertising campaign.
KMX saw its Momentum Indicator move above the 0 level on July 10, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned positive. In of the 92 cases, the stock moved higher in the following days. The odds of a move higher are at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a holding company whose subsidiaries sell and finance used motor vehicles
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