NYSE$KMX

CarMax Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CarMax's financial performance declined due to macroeconomic headwinds, but strategic actions led to improved business trends.

CarMax reported a decrease in net revenues by 17.4% to $7.7 billion, alongside declines in retail and wholesale unit sales. Despite these challenges, the company maintained strong margins and reduced SG&A expenses, partially offset by a legal settlement benefit. The company also saw sequential improvements in unit performance and prioritized operating efficiencies.

  • Net revenues decreased by 17.4% year-over-year to $7.7 billion.
  • Retail used unit sales fell by 9.6%, and comparable store used unit sales declined by 11.4%.
  • Wholesale units decreased by 13.6% compared to the previous year.
  • SG&A expenses decreased by 14.8%, driven by a legal settlement and cost management efforts.

Headline financials

Total Revenue

$7.69B

Previous: $9.31B-17.4%
EPS (adj)

$1.16

Previous: $1.56-25.6%
Wholesale vehicle unit sales

161.0K

Previous: 186.3K-13.6%
Used vehicle avg selling price

$27.3K

Previous: $28.8K-5.5%
Wholesale vehicle avg selling price

$9.02K

Previous: $11K-17.9%
Used vehicle gross profit

$2.36K

Previous: $2.34K+0.9%
Wholesale vehicle gross profit

$1.04K

Previous: $1.03K+1.3%
Used vehicle unit sales

217.9K

Previous: 240.9K-9.6%
Capital Expenditures

-$137M

Previous: -$94.8M-44.2%
Free Cash Flow

$91.6M

Previous: $157M-41.8%
Net Income

$228M

Previous: $252M-9.5%
Operating Income

$183M

Previous: $151M+21.1%
Gross Profit

$817M

Previous: $875M-6.6%
Cash & Equivalents

$264M

Previous: $95.3M+177.2%
Total Assets

$27B

Previous: $26.3B+2.4%
Stock-Based Comp

$36.4M

Previous: $22.4M+62.1%

Revenue & EPS history

CarMax · Revenue · Quarterly

$7.69B

Q1 2024-17.4%vs Q1 2023
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

CarMax · $7.69B total across 3 segments · Q1 2024

  • Used vehicle sales
    $6B-14.4%
  • Wholesale vehicle sales
    $1.51B-28.4%
  • Other sales and revenues
    $171M-5.2%

Forward guidance

CarMax plans to open a total of five new stores across the country and their first offsite production location in the Atlanta metro market in fiscal year 2024.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.7%

Avg return

Earnings day

-2.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

41%

28 / 69 earnings

Positive

+14.6%

Q1 2015

Best reaction

-23.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-8.5%
Q4 2026-3.4%-16.7%-23.0%
Q3 2026-4.5%-6.4%+18.9%
Q2 2026-19.9%-21.3%-22.4%
Q1 2026-3.4%-4.0%-10.8%
Q4 2025-17.0%-15.4%-17.4%
Q3 2025+3.5%+4.3%-3.0%
Q2 2025+3.8%+4.9%-3.3%
Q1 2025+2.6%+1.9%+12.1%
Q4 2024-9.9%-12.0%-9.6%
Q3 2024+2.5%+2.0%-7.4%
Q2 2024-11.2%-13.4%-24.1%
Q1 2024+3.7%+7.7%+6.3%
Q4 2023+4.1%+5.5%+9.7%
Q3 2023+1.3%+1.8%+11.3%
Q2 2023-23.6%-20.8%-26.2%
Q1 2023+7.5%+2.0%+2.8%
Q4 2022-9.9%-11.0%-11.5%
Q3 2022-7.8%-6.9%-21.1%
Q2 2022-13.2%-13.8%-6.5%
Q1 2022+8.0%+8.1%+12.9%
Q4 2021-3.5%-4.8%+0.4%
Q3 2021-7.2%-8.1%+19.7%
Q2 2021-11.2%-12.1%-14.1%
Q1 2021-4.0%-8.6%-3.0%
Q4 2020-7.2%+10.8%+35.7%
Q3 2020-9.7%-10.1%-3.1%
Q2 2020-0.9%+0.7%+9.5%
Q1 2020-0.4%+1.4%+2.2%
Q4 2019+8.5%+11.8%+22.4%
Q3 2019+4.1%+10.3%+9.2%
Q2 2019-2.7%-2.9%-7.7%
Q1 2019+8.0%+4.6%+8.6%
Q4 2018+3.8%-2.0%+8.3%
Q3 2018-4.7%-4.3%+3.1%
Q2 2018+7.9%+9.5%+9.2%
Q1 2018+5.5%+7.0%+11.5%
Q4 2017-0.3%+1.0%+5.4%
Q3 2017+5.8%+2.7%+6.6%
Q2 2017-2.5%-3.9%-10.2%
Q1 2017-8.2%-8.5%+13.7%
Q4 2016-4.3%
Q3 2016-8.1%
Q2 2016-5.3%
Q1 2016-5.5%
Q4 2015+8.1%
Q3 2015+12.1%
Q2 2015-8.2%
Q1 2015+14.6%
Q4 2014-8.2%
Q3 2014-10.6%
Q2 2014-0.4%
Q1 2014-1.3%
Q4 2013+8.4%
Q3 2013+8.5%
Q2 2013-8.4%
Q1 2013-7.8%
Q4 2012+1.2%
Q4 2009+1.2%
Q3 2012+2.0%
Q2 2012+7.1%
Q1 2011-3.9%
Q1 2012-3.9%
Q4 2011+4.4%
Q3 2011+2.3%
Q3 2010+2.3%
Q2 2010-0.7%
Q4 2010-0.7%
Q2 2011-0.7%

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