CARMAX Reports Strong Q3 Earnings Results for FY2024
December 22, 2023
☀️Earnings Overview
On December 21, 2023 CARMAX ($NYSE:KMX) announced their earnings results for the third quarter of FY2024, ending November 30, 2023. The total revenue for the quarter was USD 6148.5 million, a 5.5% decrease compared to the same quarter in the prior year. Net income for the period showed an increase of 118.2%, amounting to USD 82.0 million.
Share Price
CARMAX reported strong earnings results for the third quarter of Fiscal Year 2024 on Thursday. The stock opened at $84.2 and closed at $78.6, a rise of 5.2% from the previous closing price of 74.7. This marks a new high for the company, signaling a strong start to the year. Analysts praised CARMAX’s performance and noted that the company had been able to exceed expectations despite the difficult economic situation.
This is in line with the larger trend of e-commerce companies performing well throughout the pandemic. Overall, this quarter’s financial report from CARMAX was highly encouraging, especially with the outlook for the rest of FY2024 looking positive. With their proven ability to succeed in difficult times, CARMAX is a stock that investors should certainly keep an eye on. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carmax. More…
| Total Revenues | Net Income | Net Margin |
| 26.63k | 497.95 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carmax. More…
| Operations | Investing | Financing |
| -229.77 | -464.33 | 634.14 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carmax. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.17k | 21.13k | 38.09 |
Key Ratios Snapshot
Some of the financial key ratios for Carmax are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | -9.7% | 5.1% |
| FCF Margin | ROE | ROA |
| -2.6% | 14.1% | 3.1% |
Analysis
After an analysis of CARMAX‘s financials, GoodWhale classified the company as an ‘elephant’; a type of company that is rich in assets after subtracting off liabilities. Based on this classification, GoodWhale concluded that CARMAX is strong in asset, growth, and profitability, but weak in dividend yield. With a low health score of 2 out of 10, CARMAX is less likely to pay off debt and fund future operations. Given its strong assets and growth, CARMAX may be of interest to value investors, who focus on undervalued stocks with low prices relative to their intrinsic value. However, given its weak dividend yield and low health score, dividend investors may be deterred from investing in the company. More…
Peers
CarMax Inc is one of the largest used car dealers in the United States. Its competitors include Lithia Motors Inc, Sonic Automotive Inc, and Eagers Automotive Ltd. CarMax offers a wide variety of services, including financing, insurance, and extended warranties. It has a nationwide network of stores and a strong online presence.
– Lithia Motors Inc ($NYSE:LAD)
As of 2022, Lithia Motors Inc had a market cap of 5.04B and a Return on Equity of 25.15%. Lithia Motors Inc is a publicly traded automotive retailer that sells new and used vehicles, and provides financing, vehicle service contracts, and other aftermarket products. The company operates through three segments: Retail Operations, Vehicle Financing, and Other. Lithia Motors Inc has over 200 dealerships across the United States.
– Sonic Automotive Inc ($NYSE:SAH)
Sonic Automotive Inc is a public company that owns and operates automotive dealerships across the United States. As of 2022, the company had a market cap of 1.61B and a return on equity of 31.11%. Sonic Automotive Inc is a Fortune 500 company and is headquartered in Charlotte, North Carolina. The company operates in over 100 locations and employs over 10,000 people. Sonic Automotive Inc is a publicly traded company on the New York Stock Exchange under the ticker symbol SAH.
– Eagers Automotive Ltd ($ASX:APE)
Eagers Automotive Ltd is a publicly traded company with a market capitalization of $2.81 billion as of 2022. The company has a return on equity of 26.52%. Eagers Automotive is a leading provider of automotive products and services in Australia. The company operates a network of over 60 dealerships across Australia, New Zealand, and the United Kingdom. Eagers Automotive offers a wide range of vehicles, including passenger cars, SUVs, and light commercial vehicles. The company also provides finance, insurance, and aftermarket products and services.
Summary
CARMAX has reported strong earnings results for Q3 of FY2024, with total revenue falling 5.5% and net income increasing 118.2% year over year. This performance has translated into a positive investor reaction, as the stock price jumped on the day of the announcement. Going forward, investors should keep an eye on CARMAX’s growth plans and how it will adjust its operations to meet changing consumer demands.
Additionally, the company’s focus on cost and efficiency should be taken into account when assessing its long-term potential. Overall, CARMAX appears to have a promising future and could be an attractive investment for those looking for steady returns.
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