NYSE$KMX

CarMax Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

CarMax's financial results for the second quarter of fiscal year 2022 were reported, showing record net revenues and increased unit sales.

CarMax reported record net revenues of $8.0 billion, a 48.7% increase compared to the prior year. Combined retail and wholesale used vehicle unit sales increased by 19.9%. Net earnings per diluted share decreased to $1.72, down from $1.79 per diluted share a year ago.

  • Net revenues reached a record $8.0 billion, up 48.7% year-over-year.
  • Combined retail and wholesale used vehicle unit sales increased 19.9% to 419,895 units.
  • Online retail sales accounted for 9% of retail unit sales, compared to 3% in the prior year.
  • CarMax Auto Finance (CAF) income increased 35.9% to $200.0 million.

Headline financials

Total Revenue

$7.99B

Previous: $5.37B+48.7%
EPS (adj)

$1.72

Previous: $1.79-3.9%
Wholesale vehicle unit sales

188.1K

Previous: 133.0K+41.4%
Used vehicle avg selling price

$26.1K

Previous: $20K+30.8%
Wholesale vehicle avg selling price

$8.7K

Previous: $5.89K+47.7%
Used vehicle gross profit

$2.19K

Previous: $2.21K-1.3%
Wholesale vehicle gross profit

$1.01K

Previous: $1.09K-7.5%
Used vehicle unit sales

231.8K

Previous: 217.3K+6.7%
Capital Expenditures

-$138M

Previous: -$92M-49.8%
Free Cash Flow

$147M

Previous: $205M-28.0%
Net Income

$285M

Previous: $297M-3.9%
Operating Income

$193M

Previous: $251M-23.2%
Gross Profit

$815M

Previous: $752M+8.4%
Cash & Equivalents

$58.1M

Previous: $712M-91.8%
Total Assets

$24.5B

Previous: $21.2B+15.1%
Stock-Based Comp

$31.7M

Previous: $37.7M-16.0%

Revenue & EPS history

CarMax · Revenue · Quarterly

$7.99B

Q2 2022+48.7%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

CarMax · $7.99B total across 3 segments · Q2 2022

  • Used vehicle sales
    $6.1B+39.1%
  • Wholesale vehicle sales
    $1.7B+107.7%
  • Other sales and revenues
    $182M+11.3%

Forward guidance

CarMax is focused on growth and innovation, aiming to provide a fully self-service online experience to all retail consumers by the end of the fiscal year.

Tailwinds

  • Continue to make investments in growth and innovation for our customers’ benefit
  • Remain on track to bring our fully self-service online experience to all of our retail consumers by the end of the fiscal year
  • Built our omni-channel platform to give every customer the ability to progress to a sale or buy regardless of how they shop with us
  • Enable sustainable growth
  • Create meaningful long-term shareholder value

Headwinds

  • The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies
  • Changes in general or regional U.S. economic conditions.
  • Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
  • Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
  • Events that damage our reputation or harm the perception of the quality of our brand.

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 Q2 2022

Historical avgQ2 2022

-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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