Shares of CarMax (NYSE: KMX) gained in pre-market trading on Tuesday after the used car retailer reported a big surprise on the bottom line as earnings for the fourth quarter came in at $0.44 per share, down from $0.98 in the same period a year back but surpassing analysts’ consensus estimate of $0.2 per share.
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However, KMX’s sales declined by 25.6% year-over-year in Q4 to $5.7 billion and fell short of analysts’ estimates of $6.1 billion.
In FY24, the company is “planning new store growth of five locations, including two more stores in the New York City metro market, as well as our first offsite production location in the Atlanta metro market.” It has projected capex of $450 million in FY24. CarMax also reaffirmed its long-term target of aiming to sell between 2 million and 2.4 million vehicles and generating revenues in the range of $33 billion to $45 billion by FY26 and “growing our nationwide share of the age 0-10 used vehicle market to more than 5% by the end of calendar 2025.”
Overall, Wall Street analysts remain sidelined about KMX stock with a Hold consensus rating based on three Buys, three Holds, and two Sells.
