CarMax Profit Falls on Soft Used-Car Sales

23 Dec 2015 | Author: | No comments yet »

CarMax’s (KMX) Q3 Earnings and Revenues Miss Estimates December 18, 2015.

Used-car retailer Carmax recorded a disappointing third quarter as vehicle sales at stores open at least a year fell despite a strong period for the overall U.S. auto business.CarMax, Inc. (NYSE:KMX) stock sank during pre-market hours today, after the company disclosed third quarter of fiscal 2016 (3QFY16) results this morning. Overall used vehicle sales rose 3.2% because of new stores. “We had a challenging sales quarter, which together with higher advertising expenses, contributed to the year-over-year decline in third quarter net earnings,” Carmax CEO Tom Folliard said. “However, we continued to grow both total revenues and EPS, reflecting the contributions from new stores and continued share repurchase activity.”

Zacks Investment Research raised CarMax from a “hold” rating to a “buy” rating and set a $67.00 target price for the company in a research report on Tuesday, September 8th. However, the comparable used unit sales for the quarter declined 0.8%, based on modest decrease in store traffic, which was partly offset by improved foreign exchange (FX) rate. Investors should also note the recent earnings estimate revisions for CarMax as the Zacks Consensus Estimate has inched down to 68 cents from 69 cents over the past week. Six equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and two have issued a strong buy rating to the company’s stock.

The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF. The CAF products and services include retail merchandising, wholesale auctions, extended protection plans (EPPs), reconditioning and service, and customer credit. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at http://www.wkrb13.com/markets/961096/carmax-inc-kmx-posts-earnings-results-misses-estimates-by-0-06-eps/ Receive News & Ratings for CarMax Inc Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for CarMax Inc and related companies with MarketBeat.com’s FREE daily email newsletter.

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