 |
|
| View previous topic :: View next topic |
| Author |
CarMax (KMX) |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
 Posted: Tue Sep 22, 2009 8:17 am Post subject: CarMax (KMX) |
 |
|
KMX's 2Q 2009 earnings impresses:
---------------------------------------------------------------------------------
CarMax 2Q profit soars
CarMax posts steep jump in 2nd-qtr profit on sales boost
By Michael Felberbaum, AP Business Writer
On Tuesday September 22, 2009, 9:54 am EDT
RICHMOND, Va. (AP) -- Car dealership chain CarMax Inc. said Tuesday its fiscal second quarter profit surged on higher sales and a one-time gain related to its auto financing business.
The results topped Wall Street estimates, and its shares rose more than 10 percent in morning trading.
The Richmond, Va.-based company that predominantly sells used vehicles said it earned $103 million, or 46 cents per share, for the three months ended Aug. 31, compared with $14 million, or 6 cents per share, a year ago.
The results included a net gain of 10 cents per share related to its financing division.
Sales rose 13 percent to $2.08 billion from $1.84 billion in the same period last year. Sales at stores open at least a year rose 8 percent during the quarter.
Analysts surveyed by Thomson Reuters, on average, expected a profit of 18 cents per share on $1.77 billion in revenue.
Its shares rose $2, or 10.2 percent, to $21.33 in morning trading after briefly rising to a 52-week high of $21.37.
"We are extremely pleased to report a record level of quarterly income, despite the continued challenging economic environment," CEO Tom Folliard said in a news release.
While used cars didn't qualify under the federal Cash for Clunkers program that gave rebates for junking older cars in place of more fuel-efficient vehicles, Folliard said the summer program resulted in a spike in traffic in late July and August. Historically, previous incentives have had a positive impact on sales.
Folliard said the company, which operates 100 stores, is encouraged by its strong sales execution, solid gross profit and improved income from its financing arm. He also said while Clunkers program had a positive effect, it was "only one of many elements that drove our success."
Used vehicle sales rose 9.6 percent, while new vehicle sales fell 18.5 percent, the company said. The average selling price of its used vehicles increased 5.6 percent, while gross profit per vehicle increased 13.4 percent to $2,120.
The company's auto financing arm reported income of $72.1 million compared with a loss of $7.1 million in the year-ago period, due in part to an increase in the value of bonds the company holds. In the year-ago period, CarMax saw adjustments related to loans that originated in prior fiscal years, mainly projected losses on defaulted loans.
Expenses for the second quarter fell 3.1 percent to $218.1 compared with the year-ago period due to lower advertising spending and efforts to curb store and corporate overhead costs, the company said. |
|
| Back to top |
|
 |
| Author |
CarMax (KMX) Replies |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Thu Apr 05, 2012 12:35 pm Post subject: |
|
|
Morningstar on KMX's 4Q earnings.
| Quote: | | CarMax KMX reported fourth-quarter and fiscal 2012 results Thursday that beat consensus estimates. Earnings per diluted share for the quarter came in at $0.41 versus the Street's expectation of $0.39. The company also beat on revenue, with fourth-quarter revenue up about 10% year o ver year to nearly $2.5 billion. More important, CarMax finally reversed its streak of negative comparable-store sales with a 4% increase in unit sales. Gross margins did decline, as we had anticipated, because of continued increases in CarMax's procurement costs from the rise in used-vehicle prices. Used-vehicle gross margin declined 20 basis points year over year to 11.4% while total gross margin declined 50 basis points to 13.7%. However, the company made up the gross margin decline with improved selling, general, and administrative expense leveraging and higher interest income on CarMax Auto Finance to post a flat year-over-year pretax margin of 6.2%. We will publish a longer note after the earnings call, but believe our investment thesis remains in place. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Thu Dec 22, 2011 5:53 pm Post subject: |
|
|
Morningstar on KMX's fiscal 3Q earnings.
| Quote: | | CarMax KMX reported third-quarter fiscal 2012 earnings Wednesday of $0.36 per share, missing consensus by $0.02. The company posted revenue of $2.26 billion (up 7% from the year-ago quarter), about in line with expectations. Comparable-store used-vehicle unit sales declined 3% while comparable-store used revenue increased 3%. Management cited several reasons for the decline, including a very tough comparable quarter from last year and poor consumer confidence. We also suspect some normal seasonality in the results, as the fall is when many new model year vehicles come to showrooms, which gives some consumers a reason to choose a new vehicle over used. Used-vehicle gross margins declined 20 basis points from the year-ago quarter to 11.2%, while used-vehicle gross profit increased 3.2% to $2,171. The company also announced more specific guidance for new store openings of 10 in fiscal 2013 (previous guidance was 8-10) and new guidance of 10-15 stores annually for fiscal 2014-16. Our own projections are in line with this guidance but on the lower end of it for fiscal 2014 and 2015. We see no reason to reduce our fair value estimate despite the earnings miss, as we continue to believe our thesis is in place and expect a healthy increase in new-vehicle sales in calendar 2012 will drive more traffic to CarMax stores, as more consumers will be in the market to buy a new or used vehicle. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Thu Sep 22, 2011 10:42 am Post subject: |
|
|
Morningstar on KMX's fiscal 2Q earnings:
| Quote: | | CarMax KMX reported second-quarter fiscal 2012 results Thursday of $0.49 per diluted share, below consensus estimates of $0.51 per share. We will analyze the results further after the conference call, but our initial take is that a significant gross margin decline (13.7% versus 14.9% in the year-ago quarter) caused by comparable-store used-unit sales growth of negative 2%, along with high procurement costs from very high prices for late-model used vehicles, significantly hurt results this quarter. Gross dollar profit per unit declined to $2,178 from $2,205. On the positive side, selling, general, and administrative expenses as a percentage of sales improved to 9.1% from 9.6% in the prior year's second quarter. Total revenue for this quarter increased 11% to $2.59 billion, while CarMax Auto Finance's income increased 21% to $63.8 million. The overall results are disappointing but not a complete surprise, given the horrible environment for consumer confidence. We are considering a reduction to our fair value estimate but want to first analyze the results further. CarMax has seen bad times before and emerged as a stronger company, and recessions and a few bad quarters do nothing to change our opinion of the firm's superior business model over the course of a full economic cycle. |
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
|
| Posted: Thu Jun 23, 2011 11:34 am Post subject: |
|
|
Luv how the analysts continue to "adjust" for credit write-ups as they were first in line to punish these companies with '08 writedowns.
| Quote: | Used sales are expected to lose some traction in June after a slow start to the month for independent dealers’ sales and private-party sales, according to CNW Research. The company is projecting a year-over-year decline of 3.5 percent in the used-vehicle market for June.
Specifically, CNW projects 4.46 million used vehicles will be sold in June, down from 4.62 million units a year ago.
Interestingly enough, although independents (down 6.5 percent) and private-party sales (down 7.2 percent) are expected to decrease, CNW believes franchised dealers will see their used sales climb 2.8 percent in June.
|
Goooo autos!
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Wed Jun 22, 2011 6:46 pm Post subject: |
|
|
Morningstar on KMX's 1Q earnings:
| Quote: | | CarMax KMX reported strong first-quarter fiscal 2012 results this morning. We will likely leave our fair value estimate in place. Diluted earnings per share were $0.55, which was well above the market's expectations, even after adjusting for a $0.03 per share increase from lower than expected loan losses. The strength of CarMax's size again showed up in the results, as operating margin increased to 7.6% from 7.3% in the prior year's quarter, thanks to lower selling, general, and administrative costs as a percentage of sales. This scale was nice to see, given that gross margin declined 40 basis points to 14.3%, likely due to higher procurement costs for inventory as used vehicle prices again hit record highs during the quarter. Used vehicle gross profit per unit increased $12 from fiscal 2011's first quarter, to $2,224. However, used vehicle gross margin declined 60 basis points, to 11.6%. Comparable store used unit sales increased 6% from the first quarter of fiscal 2011, while comparable used vehicle dollar revenue increased 11%. We will publish a more detailed note after looking at the results further, and listening to the earnings call this morning. |
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
|
| Posted: Thu Mar 31, 2011 12:26 pm Post subject: |
|
|
With leases under $200/mo and subprime in house facilities the used car bubble is over.
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Thu Mar 31, 2011 11:20 am Post subject: |
|
|
Morningstar on KMX's 4Q earnings. Shares down 7% as I am typing this:
| Quote: | | CarMax KMX reported strong fiscal 2011 fourth-quarter results Thursday, and results for the year came in just about at our expectations. Comparable-store used unit sales increased 12% for the quarter and 10% for the year. Earnings per share for the quarter and year came in at $0.39 and $1.67, respectively. The company continues to concede a small amount of gross profit in exchange for better leverage of its selling, general, and administrative expense, which we think is a smart move. SG&A as a percentage of sales was 10.4% for the quarter compared with 11% in the year-ago quarter. We will publish a more detailed note after the earnings call and will probably wait until the 10-K is filed to reassess our fair value estimate assumptions. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Tue Dec 21, 2010 10:18 pm Post subject: |
|
|
Morningstar on KMX's 3Q earnings:
| Quote: | | CarMax KMX reported record fiscal third-quarter results Tuesday, and we will consider raising our fair value estimate. Comparable-store unit sales increased an impressive 16% year over year, thanks to continued increases in store traffic and better credit availability, including in the subprime channel. Diluted earnings per share were $0.36 compared with $0.24 in the year-ago quarter, excluding one-time gains in CarMax Auto Finance. The gross margin on used vehicles did decline to 11.4% from 11.7%, which is not surprising, given the continued rise in used-vehicle prices and management's often-stated mandate of giving up some margin to get more traffic. This higher traffic leads to more sales, which bring more scale to the business. Selling, general, and administrative costs as a percentage of sales improved to 10.4% from 11.1% in the prior fiscal third quarter. Although CarMax is back to generating negative free cash flow, we think it has plenty of liquidity to fund inventory purchases and its planned fiscal 2012 store expansion of five new locations. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Thu Sep 23, 2010 12:43 am Post subject: |
|
|
Morningstar on KMX's 2Q earnings:
| Quote: | | CarMax KMX reported outstanding fiscal 2011 second-quarter results Wednesday of $0.48 per diluted share versus $0.46 per diluted share in the prior year's second quarter. We will publish a more detailed note after the call, but key highlights include comparable-store used unit sales up 4% and total revenue up 12.7% from the year-ago period. The increase of 4% in comparable unit sales is down from 8% in last year's quarter, but last year is an unreasonable comparison because Cash for Clunkers generated more traffic into CarMax stores. We are also encouraged to see the used vehicle gross margin roughly flat at 12.1% versus 12.2% in the year-ago quarter. Stable gross profit along with higher revenue means that CarMax achieved good leverage of its overhead costs, whic h helped the operating margin excluding CarMax Auto Finance to increase to 5.3% from 4.6% a year ago. The company also increased advertising this quarter as sales picked up, and CAF had a good quarter with $52.6 million of income. The press releases states that CarMax had a year-over-year increase in the percentage of vehicle sales financed by subprime lenders, but exact amounts were not given. We think these results are a good indicator of pent-up new vehicle demand and loosening credit conditions. |
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
|
| Posted: Wed Jun 23, 2010 7:16 pm Post subject: |
|
|
I like that CEO....knows the biz backward and forward.
Like everyone, emphasizing the upscale market--service sweet spot.
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Wed Jun 23, 2010 4:20 pm Post subject: |
|
|
Morningstar's latest notes on KMX:
| Quote: | | CarMax KMX reported far better-than-expected results Wednesday for its first quarter of fiscal 2011. This news, combined with Tuesday's announcement that the company will be added to the S&P 500 Index, suggests the stock will rise significantly this morning. Although the prior-year quarter's poor results makes for easy comparison, we are still encouraged to see comparable-store unit sales up a healthy 9%, an increase in the appraisal buy rate, and a "very high recovery rate relative to historical norms" on charge-offs of loans made to customers. We will publish a detailed note after the earnings call and will either maintain or raise our fair value estimate. |
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11732
Location: Los Angeles, California
|
| Posted: Fri Apr 02, 2010 9:32 pm Post subject: |
|
|
Morningstar's first impressions of KMX's earnings:
| Quote: | | CarMax KMX reported excellent fourth-quarter fiscal 2010 results Thursday. Sales were way up, with comparable-store used unit sales rising 12% in the quarter from a weak fourth quarter in fiscal 2009. We were also impressed to see the firm increase its gross margin to 14.5% from 14.1% in the third quarter of fiscal 2010. This increase suggests CarMax is not yet seeing margin pressure from increasing vehicle-acquisition costs. We thought management would resume store growth, and that is now official. The company already announced three store openings in fiscal 2011 (which were built in fiscal 2009), but today it announced three to five new stores in fiscal 2012 and five to ten new stores in fiscal 2013. We are considering raising our fair value estimate. |
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
