Earnings Report - CarMax

LONDON, January 14, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings report on CarMax Inc. (NYSE: KMX). On December 19, 2014, the company reported its Q3 FY15 results (period ended November 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on CarMax Inc. (CarMax). During Q3 FY15, the company's total net sales and operating revenues grew 15.8% Y-o-Y. Further, net earnings and net earnings per diluted share during the reported quarter increased by 22.2% Y-o-Y and 27.7% Y-o-Y, respectively. President and CEO, Thomas J. Folliard stated that the company had another great quarter. He added that the continued strong performance in its used, wholesale and CAF operations, along with the growth of CarMax's store base and its ongoing share repurchase program contributed to the company's record third quarter earnings per share. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

During Q3 FY15, CarMax's net sales and operating revenues increased to $3.41 billion from $2.94 billion in Q3 FY14. The reported quarter's net sales and operating revenues exceeded Bloomberg analysts' forecasts of $3.26 billion. CarMax's total used vehicle unit sales during Q3 FY15 grew 14.0% Y-o-Y and comparable store used unit sales increased 7.4% Y-o-Y. The company's wholesale vehicle unit sales grew 10.0% Y-o-Y in Q3 FY15, primarily due to increased appraisal traffic and the growth of the company's store base. Further, other sales and revenues during Q3 FY15 increased $17.3 million, or 30.2% Y-o-Y. The free research on KMX can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=CarMax&d=14-Jan-2015&s=KMX

In Q3 FY14, the company's total gross profit improved 17.0% to $446.62 million from $381.72 million in Q3 FY14. Used vehicle gross profit per unit during Q3 FY15 increased $23 to $2,172. Wholesale vehicle gross profit during Q3 FY15 increased 14.8% Y-o-Y to $84.3 million, driven by the combination of 10.0% Y-o-Y increase in wholesale unit sales and an improvement in wholesale vehicle gross profit per unit, which grew 4.5% or $40 Y-o-Y, to $927. Further, the company's other gross profit surged 30.9% Y-o-Y, reflecting an improvement in other sales and revenues.

For Q3 FY15, CarMax's net earnings surged to $130.05 million, or $0.60 per diluted share, from $106.45 million, or $0.47 per diluted share, in Q3 FY14. The company's net income outperformed Bloomberg analysts' forecasts of $118.50 million, or $0.55 per diluted share. In addition, CarMax's Auto Finance (CAF) income during Q3 FY15 increased 6.9% Y-o-Y to $89.7 million, driven by an increase in average managed receivables, partly offset by a lower total interest margin percentage. Sign up and read the free analyst's notes on KMX at:

http://get.Investor-Edge.com/pdf/?c=CarMax&d=14-Jan-2015&s=KMX

During Q3 FY15, CarMax repurchased 6.2 million shares of common stock for $327.2 million under its share repurchase program. As of November 30, 2014, the company had $2.58 billion remaining available for repurchase under its program.

In Q3 FY15, CarMax opened four stores, including two stores in new markets-Tupelo, Mississippi; and Reno, Nevada and another two in the markets of Portland, Oregon; and Raleigh, North Carolina. Visit Investor-Edge and access the latest research on KMX at:

http://get.Investor-Edge.com/pdf/?c=CarMax&d=14-Jan-2015&s=KMX

Stock Performance 

On the day of earnings release, December 19, 2014, CarMax's stock rallied 11.22 % to end the session at $67.32. The stock has moved both ways since then with losses outweighing gains so far. On Tuesday, January 13, 2015, the company's shares finished at $64.27, 0.12% below its previous day's closing price of $64.35. The stock vacillated between $63.77 and $65.72 during the session. A total of 1.27 million shares were traded, which was below its three months average volume of 2.12 million shares. Over the last one month and the previous three months, the company's shares have surged 10.24% and 46.40%, respectively. Further, the stock has rallied 42.13% in past one year. Shares in CarMax closed above their 50-day and 200-day moving averages of $59.82 and $51.18, respectively. Furthermore, the stock traded at a PE ratio of 26.34 and has a Relative Strength Index (RSI) of 55.12.  

Sneak Peek to Corporate Insider Trading  

In the last one month, there were 35 insider transactions made by 12 individuals. Between December 23, 2014 and January 08, 2015, a total of 627,072 shares of the company were bought at an average price of $25.90 per share, for a total value of $16.24 million. During the stated period, a total of 646,626 shares were also disposed at an average price of $67.46 per share, for a total of $43.62 million. These are some of the key corporate insider trading transactions during the stated period: Edwin J. Hill, Senior Vice President of Service Operations at CarMax, bought 64,894 shares at price of $25.39 and sold 71,197 shares at an average price $67.64 per share. On December 23, 2014, Thomas J. Folliard bought 209,951 shares at a price of $25.39 and sold equal number of shares at a price of $67.79 per share. On the same day, Angela S. Chattin, former Senior Vice President-CarMax Auto Finance, purchased 98,360 shares at an average price of $33.82 and sold an equal number of shares at a price of $67.77 per share. Complimentary in-depth research on KMX is available at:

http://get.Investor-Edge.com/pdf/?c=CarMax&d=14-Jan-2015&s=KMX

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