CarMax Q1 Earnings Top Estimates

CarMax Inc KMX reported first-quarter FY23 sales growth of 21% year-on-year to $9.31 billion, beating the consensus of $9.12 billion.
The company sold 427,257 units through combined retail and wholesale channels, a decrease of 5.5% Y/Y.
KMX cited several macroeconomic factors that weighed on Q1 unit sales performance, including the lapping of stimulus benefits paid in the prior-year period, widespread inflationary pressures, and waning consumer confidence.
The company bought 362,280 vehicles from consumers and dealers, up 6.2% versus last year.
Gross profit was $875.4 million, down 5.3% Y/Y.
EPS of $1.56 beat the consensus of $1.49.
Selling, general and administrative expenses increased 18.5% Y/Y to $656.7 million.
KMX held cash and equivalents of $780.6 million as of May 31, 2022.
The company had $2.62 billion remaining available for repurchase under the outstanding authorization as of May 31, 2022.
"While the used vehicle market environment was challenging in the first quarter, we continued to make progress on the key strategic priorities that enable CarMax to grow profitable market share, now and into the future," said CEO Bill Nash.
Price Action: KMX shares traded lower by 0.29% at $91.49 in premarket on the last check Friday.
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