CarMax Stock Gains After Q3 Earnings Beat

CarMax Inc KMX reported third-quarter FY21 sales growth of 64.5% year-on-year, to $8.53 billion, beating the analyst consensus of $7.53 billion.
The company sold 415,054 units through retail and wholesale channels, up 29.3% Y/Y. Retail used unit sales increased 16.9%, while wholesale units increased 48.5%.
CarMax bought about 383,215 vehicles from consumers in Q3, a 91% increase Y/Y.
EPS of $1.63 improved 14.8% from $1.42 a year ago. EPS for the current year’s quarter included a one-time benefit of $0.10 related to settlement proceeds in a class-action lawsuit. Analysts had expected the company to report EPS of $1.44.
The gross profit increased 32.5% Y/Y to $836.6 million, while the margin contracted 240 basis points to 9.8%.
Selling, general and administrative expenses rose 33.7% Y/Y to $575.9 million.
CarMax held $764.6 million in cash and equivalents as of November 30, 2021.
The company had $876.2 million remaining authorization available for repurchase at the end of the quarter.
Price action: KMX shares are trading higher by 4.61% at $143.30 in premarket on the last check Wednesday.

Earnings Calendar