Carmax used-car sales disappoint in third quarter | Business News

Carmax used-car sales disappoint in third quarter

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) shares are trading down 7.63% ($4.36/share) in pre-market trading this morning after the company released their quarterly earnings.

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.” CarMax, Inc (NYSE:KMX), a company that was founded in 1993, surprisingly as a subsidiary of Circuit City, reported earnings of just $0.63 per share for the quarter. 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. 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.

For years now banks have struggled to increase their profits amid tough regulations, low interest rates and heavy legal bills following the financial crisis. As per the sources privy to the matter, the bank is expected to pay around $200 million in fines to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. 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. In filings with the SEC, JP Morgan disclosed that it had received subpoenas relating to “client disclosure concerning conflicts associated with the firm’s sale and use of proprietary products.” Banks have been under intense scrutiny from the regulators lately. While the Dodd-Frank Act mostly oversees the capital and liquidity levels of a bank, other strict regulations scrutinize the usual operations of financial institutions.

The ratio turned negative, as 69 funds sold all their CarMax, Inc shares they owned while 145 reduced their positions. 38 funds bought stakes while 165 increased their total positions. While it is hard to determine when this recent settlement charge will be confirmed, investors are advised to look out for additional legal charges and an increase in bills in the fourth quarter earnings release. According to the data on Bloomberg, majority of analysts providing coverage on JP Morgan Chase stock remain bullish. 27 out of 37 suggest a Buy, 10 recommend a Hold, while none of the analysts advocate a Sell. The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.

Red Hat Inc. (NYSE:RHT) shares surged more than 6% in the after-market trading session yesterday, after the cloud computing company reported financial results for its third quarter of fiscal year 2016. The company delivered mixed results for the current quarter, and raised its revenue outlook for the upcoming quarter based on increasing cloud momentum. The CAF products and services include retail merchandising, wholesale auctions, extended protection plans (EPPs), reconditioning and service, and customer credit. Furthermore, the company expects to generate revenues in the $535-539 million range for the coming quarter, in contrast with consensus estimates of $533 million.

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 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’s FREE daily email newsletter. Jim Whitehurst, President and CEO at Redhat, commented: “Our investments in technologies and partnerships continued to generate strong results as customers transform their IT infrastructure through the increasing adoption of open source technologies and cloud computing.” The company had previously announced a hybrid cloud partnership with Microsoft. Deutsche Bank had weighed in on the company even before the earnings release, reiterating its bullish stance along with an upward revision in its price target from $75 to $90.

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