The market expects CarMax (KMX) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended May 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price cha ...

RICHMOND, Virginia, May 20, 2024 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE:KMX), the nation's largest retailer of used cars, today announced the release of its 2024 Responsibility Report, underscoring the company's ongoing commitment to making a positive societal impact while building sustainable value for its stakeholders. The report details the numerous ways CarMax continues to enhance its sustainability efforts, invest in its local communities, and promote equal access for all to reach their full potential. ...

Richmond, VA, April 22, 2024 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE:KMX), the nation's largest retailer of used cars, has released its latest findings on consumer trends in used electric vehicle (EV) shopping. The data, gathered from CarMax.com search and sales data from September 2023 to February 2024, reveals insights into consumer interest, popular models, trade-ins, and regional preferences. Key Highlights: From January 2021 to February 2024, monthly search volume for electric vehicles on CarMax.com ...

Key PointsCarMax shares suffered a 9.2% drop on its fiscal Q4 2024 earnings report, marking its first EPS miss since fiscal Q2 2023.CarMax is suffering from falling used car prices that aren't up-ticking consumer demand as affordability remains a top challenge driven by high interest rates and low consumer confidence.CarMax unit sales rose on the retail front and the CEO is confident they will accelerate market share growth as used car affordability improves with deflation and as vehicle values stabilize.5 ...

Vehicle Sales and Operations - CarMax sold 765,572 used vehicles at retail during fiscal year 2024[111] - CarMax sold 546,331 vehicles through wholesale auctions in fiscal 2024[111] - Used vehicle sales for 2024 were $20.92 billion, accounting for 78.8% of total sales, compared to $23.03 billion (77.6%) in 2023 and $24.44 billion (76.6%) in 2022[539] - Wholesale vehicle sales for 2024 were $4.98 billion, representing 18.8% of total sales, down from $5.99 billion (20.2%) in 2023 and $6.76 billion (21.2%) in 2022[539] - Used vehicle sales revenue for 2024 was $20.92 billion, a decrease from $23.03 billion in 2023 and $24.44 billion in 2022[626] - Total net sales and operating revenues for 2024 were $26.54 billion, down from $29.68 billion in 2023 and $31.90 billion in 2022[626] Digital and Online Operations - Approximately 95% of customers who purchased a vehicle from CarMax first visited the company online in fiscal 2024[128] - 70% of CarMax customers leveraged digital capabilities to complete transactions in fiscal 2024[128] - Over 80% of CarMax customers use the online finance-based shopping tool at the start of the credit process[116] Financial Performance and Earnings - Net earnings for 2024 were $479.2 million, compared to $484.8 million in 2023 and $1.15 billion in 2022[517] - Diluted net earnings per share for 2024 were $3.02, compared to $3.03 in 2023 and $6.97 in 2022[515] - Total comprehensive income for 2024 was $440.6 million, compared to $629.1 million in 2023 and $1.22 billion in 2022[517] - Net earnings for 2024 were $479.2 million (1.8% of total sales), slightly lower than $484.8 million (1.6%) in 2023 and significantly lower than $1.15 billion (3.6%) in 2022[539] - Net earnings for fiscal 2024 were $479.2 million, down from $484.8 million in fiscal 2023[574] Cash Flow and Capital Expenditures - Net cash provided by operating activities for 2024 was $458.6 million, compared to $1.28 billion in 2023 and a net cash used of $2.55 billion in 2022[520] - Capital expenditures for 2024 were $465.3 million, compared to $422.7 million in 2023 and $308.5 million in 2022[520] - Proceeds from issuances of long-term debt for 2024 were $134.6 million, compared to $3.02 billion in 2023 and $7.68 billion in 2022[520] - Cash, cash equivalents, and restricted cash at the end of 2024 were $1.25 billion, compared to $951.0 million in 2023 and $803.6 million in 2022[520] - Cash equivalents totaling $506.6 million as of February 29, 2024, up from $470.9 million in 2023[577] Debt and Interest Rates - CarMax's total debt as of February 2024 was $16.87 billion, with $10.44 billion in fixed-rate debt and $6.43 billion in variable-rate debt[498] - A 100-basis point increase in market interest rates would decrease CarMax's fiscal 2024 net earnings per share by approximately $0.02[498] Internal Controls and Reporting - CarMax's internal control over financial reporting was effective as of February 29, 2024[502] - The company maintained effective internal control over financial reporting as of February 29, 2024[511] Segment Operations - The company operates in two reportable segments: CarMax Sales Operations and CarMax Auto Finance (CAF)[522] - The company completed the acquisition of Edmunds Holding Company on June 1, 2021[522] Assets and Liabilities - Total current assets increased to $5.23 billion in 2024 from $5.04 billion in 2023, with cash and cash equivalents rising to $574.1 million from $314.8 million[543] - Auto loans receivable, net of allowance for loan losses, grew to $17.01 billion in 2024 from $16.34 billion in 2023[543] - Total liabilities increased to $21.12 billion in 2024 from $20.57 billion in 2023, with long-term debt decreasing to $1.60 billion from $1.91 billion[543] - Shareholders' equity rose to $6.07 billion in 2024 from $5.61 billion in 2023, driven by an increase in retained earnings to $4.13 billion from $3.72 billion[543] - Cash equivalents consisting of highly liquid investments with original maturities of three months or less were $484.3 million as of February 29, 2024, up from $229.5 million as of February 28, 2023[548] - Other investments, including restricted money market securities and equity securities, totaled $137.3 million as of February 29, 2024, compared to $133.2 million as of February 28, 2023[555] - Accrued compensation and benefits increased to $192.4 million in 2024 from $159.3 million in 2023[557] - Vehicle return reserves increased slightly to $97.8 million in 2024 from $95.9 million in 2023[557] - Restricted cash on deposit in reserve accounts was $118.2 million as of February 29, 2024, compared to $113.7 million as of February 28, 2023[585] - Total average managed receivables were $17,313.2 million for 2024, $16,304.3 million for 2023, and $14,934.0 million for 2022[605] - Auto loans receivable, net, were $17,011.8 million as of February 29, 2024, and $16,341.8 million as of February 28, 2023[606] - Total ending managed receivables were $17,391.8 million as of February 29, 2024, and $16,767.9 million as of February 28, 2023[608] - Core managed receivables for A-grade customers were $9,141.1 million (52.6%) as of February 29, 2024, compared to $8,489.9 million (50.6%) as of February 28, 2023[609] - Core managed receivables for B-grade customers were $6,123.5 million (35.2%) as of February 29, 2024, compared to $5,913.6 million (35.3%) as of February 28, 2023[609] - Core managed receivables for C and other grades were $1,548.7 million (8.9%) as of February 29, 2024, compared to $1,925.7 million (11.5%) as of February 28, 2023[609] - Gross charge-offs were $561.5 million as of February 29, 2024, compared to $561.5 million as of February 28, 2023[609] - The allowance for loan losses was $482.8 million as of February 29, 2024, compared to $507.2 million as of February 28, 2023[608] - Asset-backed term funding was $12,638.2 million as of February 29, 2024, compared to $12,242.8 million as of February 28, 2023[608] - Total ending managed receivables as of February 29, 2024, were $17.39 billion, with past due receivables accounting for 5.44% ($946.6 million) of the total[613] - The company recorded a provision for loan losses of $310.5 million for the year ended February 29, 2024[611] - Delinquent loans 31-60 days past due accounted for 3.07% ($534.4 million) of total ending managed receivables as of February 29, 2024[613] - Allowance for loan losses balance at the end of 2024 was $507.2 million, representing 3.02% of total ending managed receivables[642] - Current portion of cancellation reserves decreased to $69.7 million in 2024 from $76.1 million in 2023[662] - Total assets at fair value were $1,247.407 million in 2024, with 95.3% classified as Level 1 and 4.7% as Level 2[653] - Derivative instruments designated as hedges had a fair value of $45.761 million in assets and ($2.302) million in liabilities as of February 29, 2024[653] - Deferred tax assets decreased to $426,693 thousand as of February 2024 from $447,628 thousand in 2023[664] - Deferred tax liabilities decreased to $327,903 thousand as of February 2024 from $366,888 thousand in 2023[664] - Net deferred tax asset increased to $98,790 thousand as of February 2024 from $80,740 thousand in 2023[664] - Allowance for loan losses decreased to $117,618 thousand as of February 2024 from $123,636 thousand in 2023[664] - Operating lease liabilities decreased to $139,124 thousand as of February 2024 from $146,006 thousand in 2023[664] - Share-based compensation increased to $43,689 thousand as of February 2024 from $37,165 thousand in 2023[664] - Intangibles decreased to $43,060 thousand as of February 2024 from $47,072 thousand in 2023[664] - Property and equipment decreased to $101,796 thousand as of February 2024 from $113,015 thousand in 2023[664] - Inventory increased to $18,933 thousand as of February 2024 from $14,512 thousand in 2023[664] - Derivatives decreased to $33,933 thousand as of February 2024 from $54,672 thousand in 2023[664] Revenue and Expenses - Extended protection plan revenues for 2024 were $401.8 million, down from $422.3 million in 2023 and $478.4 million in 2022[626] - Advertising and subscription revenues for 2024 were $135.8 million, slightly up from $133.3 million in 2023[626] - Total other sales and revenues for 2024 were $638.0 million, down from $660.8 million in 2023 and $699.5 million in 2022[626] - Interest and fee income increased to $1,677.4 million in 2024, up 9.7% from $1,441.5 million in 2023[633] - Total interest margin after provision for loan losses decreased to $728.2 million in 2024, down from $814.2 million in 2023[633] - CarMax Auto Finance income declined to $568.3 million in 2024, compared to $663.4 million in 2023[633] - Provision for loan losses was $310.5 million in 2024, slightly lower than $317.0 million in 2023[633] - Total direct expenses increased to $159.9 million in 2024, up from $150.8 million in 2023[633] - Total advertising expenses decreased to $265.6 million in fiscal 2024 from $295.6 million in fiscal 2023[563] - Share-based compensation expense increased to $70.96 million in fiscal 2024 from $62.03 million in fiscal 2023[574] - Repurchases of common stock totaled $91.41 million in fiscal 2024, down from $323.24 million in fiscal 2023[574] - Retained earnings grew to $4.13 billion in fiscal 2024 from $3.72 billion in fiscal 2023[574] - Accumulated other comprehensive income decreased to $59.28 million in fiscal 2024 from $97.87 million in fiscal 2023[574] - Total equity increased to $6.07 billion in fiscal 2024 from $5.61 billion in fiscal 2023[574] - Amortization expense of intangible assets remained consistent at $15.4 million in both fiscal 2024 and 2023[660] - The company recognized a $20.8 million expense in CAF income for changes in fair value of derivatives for the year ended February 29, 2024[615] - The company estimates that $48.5 million will be reclassified from AOCI to CAF income in the next 12 months[615]

The used vehicle retailer underwhelmed with its latest quarterly update.Shares of CarMax (KMX -0.42%) are down 11.7% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the used vehicle retailer announced disappointing quarterly results and delayed a key long-term vehicle sales target.On CarMax's underwhelming quarterFor CarMax's fiscal fourth quarter ended Feb. 29, revenue declined 1.7% year over year to $5.63 billion. On the bottom line, that translated to ...

CarMax is deploying tech solutions to boost efficiency as it continues to deal with a tough environment for buying and selling used cars.“Fiscal 2024 was a challenging year across the used car industry as vehicle affordability and widespread macro factors continue to pressure sales,” CarMax President and CEO Bill Nash said Thursday (April 11) during the company’s quarterly earnings call.During the quarter ended Feb. 29, the company’s combined retail and wholesale used vehicle unit sales declined 0.9% year o ...

Shares of the used car dealer fell after a disappointing earnings report and a delay in hitting a sales target.Shares of CarMax (KMX -9.12%) were pulling back today after the country's largest retailer of used cars, both online and in-store, posted disappointing results in its fourth-quarter earnings report.As of 3:30 p.m. ET, the stock was down 9.5%. CarMax hits a bumpy roadIt's been a tough market for used car dealers as high interest rates have significantly raised monthly payments for buyers, and prices ...

Key TakeawaysCarMax missed quarterly profit and sales estimates amid slowing demand caused by what it called "vehicle affordability challenges."The used-car retailer sold more retail vehicles, but at lower prices. Wholesale vehicle sales dropped, along with prices.CarMax pushed back its goal to sell at least 2 million vehicles annually. CarMax (KMX) shares plunged Thursday after the biggest U.S. used-car retailer posted weaker-than-expected quarterly results amid slowing demand. The company reported fourth- ...

Key PointsCarMax struggled in Q4 and revised its long-term target, sending shares down into the buying zone. The market is range-bound after falling 50% from its highs and is unlikely to set new lows. The share price may wallow now, but the long-term outlook includes a leveraged recovery due to increased store count and market share gains. 5 stocks we like better than CarMaxCarMax, Inc. NYSE: KMX shares are down a solid 10% following a weak Q4 earrings report and a revision in the long-term guidance. The co ...