Cliff Banks - The Banks Report

Carmax Pre-market Trading Up on Strong Quarterly Results

June 22, 2018 — Carmax shares are up nearly 10% and more than $6.60 in pre-market trading this morning after being down $1.72 yesterday. The jump this morning is being fueled by a strong first (fiscal) quarter in which Carmax’s earnings per share of $1.33 beat expectations by $0.09 and overall revenue of $4.79 billion exceeding analyst expectations by $180 million.

The tax cut enacted by President Trump’s administration helped increase net earnings 2.7% to $238.7 million and net earnings per diluted share 17.7% to $1.33.

Revenue from vehicle sales jumped 4.6% to more than $4 billion while its 98,398 unit sales were up slightly.

Wholesale operations continues to be a strength for Carmax as its $1,012 gross profit per vehicle was up 9.6%. Overall, gross profit per vehicle was flat at $2,215. Also finance operations grew nearly 6% with revenue of $115.6 million for the quarter.

The used car retailer also provided a healthy return for shareholders buying back 3.3 million shares for more than $207 million.

Carmax also announced executive vice president and chief operating officer William C. Wood, Jr. will retire effective July 31, 2018.


Sorry, comments are closed for this post.

Subscribe Now to The Banks Report