CarMax Q1 Earnings Beat Estimates, But Stock Slips 9%
CarMax reported its first fiscal quarter results, surpassing average analyst estimates from LSEG. Earnings per share came in at $1.31 versus 95 cents expected, while revenue reached $8.01 billion against $7.42 billion expected. Despite the beats, the company's stock fell 9%.
"Earnings per share were $1.31 versus 95 cents expected, and revenue was $8.01 billion versus $7.42 billion expected."
Key Financials
- Total gross profit: $854.4 million, down 4.4% year-over-year.
- Retail used vehicle gross profit decreased 9.5%, and gross profit per retail used unit was $2,177, down $230 from the prior year's record.
- Net revenue increased 6.2% to $8.01 billion, compared to $7.6 billion a year earlier.
- Net earnings: $185.6 million, down 11.8% from $210.4 million in the same period last year.
Strategy and Outlook
Keith Barr, former CEO of InterContinental Hotels Group, became CEO of CarMax on March 16. He plans to release more details of a multi-year turnaround strategy in late fall, focusing on offerings, customer experience, value, and operational efficiency. Barr expressed confidence in the plan to drive sustainable long-term growth.