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

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