Goldman Sachs Reviews CarMax 4Q

According to Goldman Sachs, CarMax's KMX 4Q results (adjusted EPS of $0.37 vs. $0.33 a year ago, consensus of $0.38, and GS of $0.39) revealed lower-than-expected same-store sales growth (+12% yoy retail used units vs. consensus at +14-15% and GS +17%) and, to a lesser extent, lower gross profit per car ($2,096 vs. GS $2,116). Goldman Sachs reported that the KMX story remains on track. “We lower our FY2011 and FY2012 EPS estimates on flow-through of lowerthan- expected 4Q2010 retail used same-store sales, partly offset by more robust wholesale estimates, and continue to look for strong credit income. Our FY2011E EPS goes to $1.85 from $1.89 and FY2012E to $2.10 from $2.18. We also introduce our FY2013 estimate of $2.30.” CarMax closed yesterday at $32.10.