Post-Earnings Coverage - CarMax

LONDON, September 26, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on CarMax Inc. (NYSE: KMX). The company reported its financial results for Q2 FY15 (period ended August 31, 2014) on September 23, 2014. During Q2 FY15, CarMax Inc.'s total net sales and operating revenues grew 10.9% Y-o-Y and diluted EPS increased $0.08 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview  

CarMax Inc.'s net sales and operating revenues during Q2 FY15 increased to $3,599.2 million, from $3,245.6 million, in the previous year quarter. The reported quarter's net sales and operating revenues exceeded Bloomberg analysts' forecasts of $3,570.0 million. CarMax Inc.'s Q2 FY15 Wholesale vehicle unit sales grew 7.4% Y-o-Y, driven by a stronger wholesale vehicle buy rate and the addition of new stores. The company's total used vehicle unit sales during Q2 FY15 grew 6.3% Y-o-Y and comparable store used unit sales increased 0.2% Y-o-Y, on top of increases of 21.1% in total used units and 15.9% in comparable store used units in Q2 FY14. Further, CarMax Inc.'s other sales and revenues during the reported quarter increased 10.8% Y-o-Y to $78.8 million. The free research on KMX can be downloaded as in PDF format at:

http://www.Investor-Edge.com/KMXFreeReport

The company's total gross profit during the reported quarter improved 6.6% to $463.3 million, from $434.7 million in Q2 FY14. Used vehicle gross profit during Q2 FY15 increased 6.2%, due to the increase in total used unit sales. Wholesale vehicle gross profit during the reported quarter increased 10.5% Y-o-Y, driven by the combination of the 7.4% increase in wholesale unit sales and an improvement in wholesale vehicle gross profit per unit, which grew 2.9%, from the prior year period. Further, the company's other gross profit increased 2.0% Y-o-Y, reflecting an improvement in net third-party finance fees.

CarMax Inc.'s net earnings during the reported quarter broadened 10.2% to $154.5 million from $140.3 million in the previous year quarter. On per share basis, the company's net earnings for Q2 FY15 grew 12.9% to $0.70 per diluted from $0.62 in Q2 FY14. The company's net earnings per diluted share for the reported quarter included a $0.06 benefit in connection with the receipt of settlement proceeds in a class action lawsuit. CarMax Inc.'s net income outperformed Bloomberg analysts' forecasts of $150.2 million, or $0.67 per diluted share. In addition, CarMax Inc.'s Auto Finance (CAF) income during Q2 FY15 increased 9.7% Y-o-Y to $92.6 million, driven by an increase in average managed receivables. Sign up and read the free analyst's notes on KMX at:

http://www.Investor-Edge.com/KMX-26092014

Expressing satisfaction over the record Q2 FY15 results, Tom Folliard, President and CEO of CarMax, stated in the press release that the continued growth in the company's store base and improvements across its used, wholesale and CAF operations, as well as the company's  share repurchase program, all contributed to the CarMax's record second quarter earnings per share.

During Q2 FY15, CarMax opened four stores, including three stores in new markets-Madison, Wisconsin; Lynchburg, Virginia; and Portland, Oregon and one in an existing market of Dallas, Texas.

During Q2 FY15, the company repurchased 4.0 million shares of common stock for $201.0 million under its share repurchase program. As of August 31, 2014, the company had $907.0 million remaining available for repurchase under its repurchase program.

Stock Performance 

On the day of the earnings release, September 23, 2014, CarMax Inc.'s stock took a beating of 9.49% and ended the session at $47.80, and on the last close, Thursday, September 25, 2014; it finished at $47.52, 1.98% below its previous day's closing price. The stock vacillated between $47.06 and $48.31 during the session. A total of 2.65 million shares were traded, which was above its three months average volume of 1.49 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 10.02% and 7.85%, respectively. However, the stock has advanced 1.06% from the beginning of 2014. Shares in CarMax Inc. are trading below their 50-day and 200-day moving averages of $51.28 and $47.99, respectively. Furthermore, the stock traded at a PE ratio of 20.57 and has a Relative Strength Index (RSI) of 34.07. Visit Investor-Edge and access the latest research on KMX at:

http://www.Investor-Edge.com/KMXEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month CarMax Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on KMX is available at:

http://www.Investor-Edge.com/KMXInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED