Tuesday, December 22, 2020 10:05:00 AM
Dec. 22, 2020 9:53 AM ETCarMax, Inc. (KMX)By: Clark Schultz, SA News Editor
CarMax (NYSE:KMX) is being largely defended on Wall Street after its FQ3 report topped estimates but re-assuring 2021 guidance wasn't posted.
Evercore ISI (Outperform): "CarMax is taking market share and driving profitable growth. While some (us included) expected even more from the used car leader, we remain constructive into 2021 on a materially improved set up for a multichannel leader that fits our M.E.N.D. framework at a 20% discount to the S&P. FY3Q results show continued progress after COVID crushed demand to start the year, with EPS of $1.42 +37% beating our $1.16 and the Street’s $1.13. Robust CAF results drove most of the beat, with lower SGA/better wholesale making up for a retail used unit comp miss (-0.8% YoY vs. EVR 2.5% and the Street’s +3.5%). The pushback is why aren’t comps stronger given that digital competitors like Carvana are likely growing in excess of 40% in a comparable period?... Stay the course, as KMX risk reward is appealing in our view with a favorable set up on M.E.N.D. positioning. CarMax 3Q highlights of positive total unit sales, strong wholesale and CAF profits are good, although comps down 0.8% are materially below the 'normalized' 5-8% we expect."
Bank of America (Buy): "KMX’s continued investment in its omni-channel platform and new store openings. CarMax Auto Finance income was a bright spot in 3Q, +55% YoY to $176mm (BofAe $98mm), reflecting lower provision for credit losses and higher net margin and average managed receivables. In total, we were impressed by KMX's 3Q results in light of current market volatility. We maintain our Buy rating, and view any potential weakness or volatility in the stock off the underperformance on SSS as a particularly attractive entry point."
Shares of CarMax have extended on their premarket drop and are now down 4.55%. The stock was on Seeking Alpha's Catalyst Watch with it unclear if guidance for the year ahead would be issued.
Recent KMX News
- CarMax Unveils Latest Trends in Used EV Shopping • GlobeNewswire Inc. • 04/22/2024 02:00:00 PM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- U.S. Futures Dip Ahead of PPI and Unemployment Claims, Oil Prices Slide • IH Market News • 04/11/2024 11:23:45 AM
- CarMax Reports Fourth Quarter and Fiscal Year 2024 Results • Business Wire • 04/11/2024 10:50:00 AM
- U.S. Futures Dip Ahead of Key Inflation Data and Q1 Earnings Season Kickoff, Oil Prices Decline • IH Market News • 04/08/2024 11:19:03 AM
- CarMax Announces Fourth Quarter Conference Call • Business Wire • 03/20/2024 09:00:00 PM
- Gotham FC Announces CarMax as Jersey-Front and Marquee Partner • GlobeNewswire Inc. • 02/27/2024 03:15:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/09/2024 10:46:33 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/30/2024 09:14:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/29/2024 09:37:07 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/26/2024 10:26:50 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 01/26/2024 10:18:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/24/2024 09:17:01 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 01/23/2024 10:25:53 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 01/05/2024 03:43:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/29/2023 09:14:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/28/2023 09:28:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/28/2023 09:28:20 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/27/2023 10:41:18 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/26/2023 06:07:47 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/21/2023 11:59:12 AM
- CarMax Reports Third Quarter Fiscal 2024 Results • Business Wire • 12/21/2023 11:50:00 AM
- CarMax Introduces its First All-Electric Semi-Truck into Logistics Fleet • GlobeNewswire Inc. • 12/12/2023 02:00:00 PM
- CarMax Announces Third Quarter Conference Call • Business Wire • 11/30/2023 10:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/26/2023 08:15:21 PM
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