CARMAX Reports Third Quarter Results for FY2024, Ending November 30, 2023

🌥️Earnings Overview

CARMAX ($NYSE:KMX) announced their financial results for the quarter that ended on November 30, 2023, comprising of FY2024’s third quarter. Total revenue for the quarter represented a 5.5% decrease from the same period in the prior year at USD 6148.5 million, yet net income soared by 118.2%, amounting to USD 82.0 million.

Stock Price

The news was met with a 5.2% increase from the previous closing price of $74.7 as the stock opened at $84.2 and closed at $78.6. Overall, CARMAX reported positive results for the period and investors responded favorably to the news, with the stock rising 5.2% from its previous closing price. This is good news for investors as CARMAX continues to remain a leader in the used vehicle market. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Carmax. CARMAX_Reports_Third_Quarter_Results_for_FY2024_Ending_November_30_2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Carmax. CARMAX_Reports_Third_Quarter_Results_for_FY2024_Ending_November_30_2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Carmax. CARMAX_Reports_Third_Quarter_Results_for_FY2024_Ending_November_30_2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Carmax are shown below. CARMAX_Reports_Third_Quarter_Results_for_FY2024_Ending_November_30_2023″>More…

Analysis

As GoodWhale analysts, we conducted an analysis of CARMAX‘s fundamentals. Based on our rating system, CARMAX is classified as an ‘elephant’, a type of company with significant assets after liabilities have been deducted. Investors interested in such companies are usually looking for a secure investment that will provide steady returns and low volatility. Unfortunately, CARMAX’s health score is only 2/10. This indicates that the company is not in a particularly stable financial position and may not be able to safely ride out any crisis without risking bankruptcy. CARMAX is strong in terms of asset, growth, and profitability but weak in terms of dividend. As such, investors should be cautious when considering investing in this 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

Investors were pleased with CARMAX’s third quarter earnings results for FY2024, ending November 30, 2023. Revenue decreased slightly year-over-year by 5.5%, however net income increased by 118.2%, bringing total earnings to USD 82.0 million. This impressive growth in profits indicate to investors that CARMAX is on a strong trajectory for the coming year and its stock price moved up accordingly to reflect investor confidence in the company. Thus, CARMAX appears to be a viable option for those looking to invest in the automotive sector.