CarMax (NYSE:KMX) Issues Earnings Results, Misses Expectations By $0.13 EPS

CarMax (NYSE:KMX) announced its quarterly earnings results on Thursday. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13), RTT News reports. CarMax had a return on equity of 7.72% and a net margin of 1.87%. The firm had revenue of $5.63 billion for the quarter, compared to analysts’ expectations of $5.76 billion. During the same period last year, the company posted $0.44 earnings per share. The business’s quarterly revenue was down 1.7% on a year-over-year basis.

CarMax Price Performance

Shares of NYSE KMX opened at $79.18 on Thursday. The company has a quick ratio of 0.71, a current ratio of 2.45 and a debt-to-equity ratio of 3.01. CarMax has a 52 week low of $59.66 and a 52 week high of $88.22. The firm has a 50-day simple moving average of $78.85 and a 200-day simple moving average of $72.24. The stock has a market capitalization of $12.50 billion, a price-to-earnings ratio of 25.14, a price-to-earnings-growth ratio of 1.24 and a beta of 1.61.

Insider Activity at CarMax

In related news, EVP Diane L. Cafritz sold 2,730 shares of the company’s stock in a transaction dated Tuesday, January 23rd. The shares were sold at an average price of $70.54, for a total value of $192,574.20. Following the completion of the sale, the executive vice president now owns 5,073 shares of the company’s stock, valued at $357,849.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In related news, EVP Diane L. Cafritz sold 2,730 shares of the company’s stock in a transaction dated Tuesday, January 23rd. The shares were sold at an average price of $70.54, for a total value of $192,574.20. Following the completion of the sale, the executive vice president now owns 5,073 shares of the company’s stock, valued at $357,849.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Jill A. Livesay sold 14,199 shares of the company’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $70.89, for a total transaction of $1,006,567.11. Following the completion of the sale, the vice president now directly owns 9,068 shares of the company’s stock, valued at approximately $642,830.52. The disclosure for this sale can be found here. Over the last quarter, insiders sold 38,929 shares of company stock valued at $2,740,901. 1.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On CarMax

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in CarMax by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock worth $1,387,222,000 after buying an additional 222,132 shares during the period. BlackRock Inc. boosted its stake in CarMax by 1.8% during the first quarter. BlackRock Inc. now owns 10,633,886 shares of the company’s stock worth $683,546,000 after buying an additional 184,104 shares during the period. Akre Capital Management LLC boosted its stake in CarMax by 0.7% during the first quarter. Akre Capital Management LLC now owns 7,339,952 shares of the company’s stock worth $708,159,000 after buying an additional 49,780 shares during the period. State Street Corp boosted its stake in CarMax by 3.2% during the second quarter. State Street Corp now owns 6,220,212 shares of the company’s stock worth $520,632,000 after buying an additional 193,111 shares during the period. Finally, Invesco Ltd. boosted its stake in CarMax by 8.4% during the first quarter. Invesco Ltd. now owns 3,757,420 shares of the company’s stock worth $362,515,000 after buying an additional 291,804 shares during the period.

Wall Street Analyst Weigh In

A number of research firms have weighed in on KMX. Wedbush upped their price objective on shares of CarMax from $90.00 to $100.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 2nd. Needham & Company LLC upgraded shares of CarMax from a “hold” rating to a “buy” rating and set a $99.00 price objective for the company in a research report on Wednesday, March 20th. Oppenheimer restated an “outperform” rating and set a $105.00 price objective on shares of CarMax in a research report on Tuesday. Bank of America upped their price objective on shares of CarMax from $44.00 to $50.00 and gave the stock an “underperform” rating in a research report on Thursday, February 29th. Finally, Mizuho started coverage on shares of CarMax in a research report on Tuesday, March 19th. They issued a “neutral” rating and a $80.00 target price for the company. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $81.25.

About CarMax

CarMax, Inc, together with its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. The company offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.