CarMax Beat On Earnings, But It Didn't Do It By Selling Cars
Portfolio Pulse from AJ Fabino
CarMax, Inc (NYSE:KMX) reported a surprising Q1 fiscal 2024 earnings beat despite a depressed used car market. The company's earnings were $1.16 per share, beating the Street estimate of 79 cents, with revenues of $7.69 billion. However, retail used car revenues fell 14.4% YoY, and the company is bracing for a 'used-vehicle recession'.
June 23, 2023 | 7:03 pm
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CarMax reported better-than-expected Q1 fiscal 2024 earnings, but the used car market remains unstable. The company is preparing for a 'used-vehicle recession' and adjusting its strategy.
CarMax's earnings beat is a positive sign for the company, but the overall used car market remains unstable, which could negatively impact the company's performance in the short term. The company is adjusting its strategy to prepare for a 'used-vehicle recession', which indicates that they are aware of the challenges and are taking steps to mitigate them.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100