Benzinga
Published Apr 12, 2024 13:03
Updated Apr 12, 2024 14:10
CarMax Analysts Cut Their Forecasts After Downbeat Earnings
Benzinga - by Avi Kapoor, Benzinga Staff Writer.
CarMax Inc (NYSE: KMX) reported weaker-than-expected fourth-quarter earnings on Thursday.
CarMax reported a fourth-quarter FY24 sales decline of 1.7% year-on-year to $5.63 billion, missing the analyst consensus estimate of $5.79 billion. EPS of 32 cents missed the consensus estimate of 49 cents, according to data from Benzinga Pro.
The company sold 287,603 units through combined retail and wholesale channels, a decrease of 0.9% year-over-year. The company opened four stores in the fourth quarter and had a total of 245 used car stores as of February 29, 2024.
"We are encouraged by the performance of our business during the fourth quarter. We reported growth in total used unit sales and comps, delivered strong retail and wholesale gross profit per unit, continued to actively manage SG&A and grew CAF income significantly year-over-year," said Bill Nash, president and chief executive officer.
CarMax sees FY25 capital expenditure of $500 million – $550 million. The company reiterated its goal to sell more than 2 million combined retail and wholesale units annually. However, the company extended the timeframe to between fiscal year 2026 and fiscal year 2030 due to uncertainty in the timing of market recovery.
CarMax shares fell 9.2% to close at $71.98 on Thursday.
These analysts made changes to their price targets on CarMax following earnings announcement.
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Latest Ratings for KMX
Feb 2022 | Evercore ISI Group | Downgrades | Outperform | In-Line |
Jan 2022 | Seaport Global | Upgrades | Neutral | Buy |
Dec 2021 | RBC Capital | Maintains | Outperform |
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