Why Used Vehicle Retailer CarMax Shares Are Surging Today
Portfolio Pulse from Shivani Kumaresan
CarMax Inc (NYSE:KMX) shares rose after reporting mixed Q3 FY24 earnings with a sales decline of 5.5% to $6.15 billion, missing estimates. Unit sales increased by 1.3% YOY, with online sales making up 14% of retail sales. Gross profit rose 6.3% to $612.9 million, and EPS of $0.52 beat estimates. SG&A expenses decreased, but CarMax Auto Finance income dropped 2.3%. The company plans to open four new stores in Q4. KMX shares surged 7.20% in premarket trading.
December 21, 2023 | 1:17 pm
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POSITIVE IMPACT
CarMax reported mixed Q3 FY24 earnings with a slight increase in unit sales and a significant rise in gross profit, despite a sales decline. The EPS beat and gross profit increase, along with expansion plans, have positively impacted the stock price.
The positive reaction in premarket trading is likely due to the EPS beat and gross profit increase, which are key indicators of financial health. The expansion plans suggest growth potential, further boosting investor confidence. However, the sales miss and the broader industry challenges temper the impact, preventing a higher importance score.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100