CarMax reported revenues surged 49.2% to $7.7 billion for the quarter that ended in February, beating analysts’ estimates of $7.5 billion. On the other hand, the company announced earnings per share of 98 cents, down 22.8% compared to the same period last year. Wall Street was looking for an EPS of $1.25. The weaker-than-expected earnings came from surging prices, waning consumer confidence, and the expiration of COVID-19 benefits from the federal government.
Moreover, wholesale sales went up 43.8% to 149,095 vehicles in the quarter – a record number. At the same time, the average prices rose 85.2%, or almost $5,300 per unit compared to the same time last year.
"While the fourth quarter was adversely affected by macro factors, our retail market share growth for the year was the highest it’s been during my tenure as CEO and is a reflection of our ability to deliver the most customer-centric experience in the industry," said CEO Bill Nash.
In fiscal 2023, CarMax plans on opening ten stores.
At the moment of writing, CarMax’s stock price was trading 4.36% lower.
Sources: marketwatch.com, thestreet.com