- CarMax Inc (NYSE:KMX) reported fourth-quarter 2022 net revenues growth of 48.8% year-on-year to $7.69 billion, beating the consensus of $7.50 billion.
- The company sold 343,413 units through retail and wholesale channels, up 11.3% Y/Y. Retail used unit sales decreased 5.2%, while wholesale units increased 43.8%.
- CarMax bought about 324,000 vehicles from consumers in Q4, a 69% increase Y/Y.
- EPS of $0.98 missed the consensus of $1.25.
- The gross profit increased 10.9% Y/Y to $711 million, while the margin contracted 320 basis points to 9.2%.
- Selling, general and administrative expenses rose 22.5% Y/Y to $620.9 million.
- CarMax held $803.6 million in cash and equivalents as of February 28, 2022.
- As of February 28, 2022, the company had $774.5 million remaining available for repurchase. Subsequent to the end of the fiscal year, the Board increased the authorization by $2.0 billion.
- CarMax currently plans to open ten stores in FY23, including its expected entry into the New York metro market.
- Long-Term Targets: CarMax expects to sell 2 million - 2.4 million vehicles (prior view 2 million vehicles) through its combined retail and wholesale channels by FY26.
- The company expects to generate $33 billion - $45 billion (prior view $33 billion) in revenue by FY26.
- It reaffirmed the growth of its nationwide share of the age 0-10 used vehicle market to more than 5% by the end of calendar 2025.
- Price Action: KMX shares are trading lower by 4.53% at $98.50 in premarket on the last check Tuesday.
