CarMax, Inc (NYSE:KMX) currently trades at $65.19 which is about -2.28% lower than the 52-week high of $68.86. The trading volume at ready counter moved to 2.93M shares as compared to 2.11M shares average traded volume. The stock failed to get pushed above the $66.55 barrier, the intraday high, after opening at $65.00. Analysts have a consensus target price of $67.67 in the 12-month period. Its market capitalization has now reached to $12.17B.
CarMax, Inc (NYSE:KMX) was dropped to Underweight from Equal Weight at Barclays. It has earned a consensus buy rating, according to Zacks Investment Research. No analyst has rated the stock with a sell rating, 5 have assigned a hold rating, Zero says it’s a buy and 5 have assigned a strong buy rating to the company.
CarMax, Inc (KMX) on December 20, 2016 reported results for the third quarter ended November 30, 2016.
- Net sales and operating revenues increased 4.4% to $3.70 billion.
- Used unit sales in comparable stores increased 5.4%.
- Total used unit sales rose 9.1%.
- Total wholesale unit sales declined 2.2%.
- CarMax Auto Finance (CAF) income declined 3.2% to $89.4 million.
- Net earnings increased 6.6%, to $136.6 million, while net earnings per diluted share rose 14.3% to $0.72.
Third Quarter Business Performance Review
Sales. Total used vehicle unit sales grew 9.1% and comparable store used unit sales rose 5.4% versus the prior year’s third quarter. The comparable store sales performance resulted from increases in both conversion and store traffic. Our sales performance included a reduction in the Tier 3 sales mix to 10.2% of used unit sales from 13.8% in the prior year’s third quarter. Tier 3 sales represent those financed by our Tier 3 third-party finance providers to whom we pay a fee and those in CAF’s Tier 3 loan origination activity. For the non-Tier 3 customer base, comparable store used unit sales rose 9.8%.
Wholesale vehicle unit sales declined 2.2% versus the third quarter of fiscal 2016, as contributions from the growth in our store base and an improved appraisal buy rate were more than offset by a reduction in appraisal traffic.
Other sales and revenues increased 1.0% compared with the third quarter of fiscal 2016. Improvements in extended protection plan (EPP) revenues and third-party finance fees were largely offset by a decrease in new vehicle sales that resulted from the disposal of two of our four new car franchises during the third quarter of fiscal 2016. EPP revenues increased 14.0%, largely reflecting the growth in our used unit sales and pricing changes. Net third-party finance fees improved by 32.9%, primarily due to the reduced proportion of our sales attributable to Tier 3 finance providers.