NYSE$KMX

CarMax Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CarMax reported a decrease in net earnings per diluted share and a slight increase in net revenues for Q2 2023.

CarMax reported a 2.0% increase in net revenues to $8.1 billion, driven by higher average selling prices, but experienced a 6.4% decrease in total retail used units sold and a 15.1% decrease in wholesale units sold. Net earnings per diluted share decreased to $0.79 from $1.72 in the prior year, impacted by macroeconomic factors and increased SG&A expenses.

  • Net revenues increased by 2.0% to $8.1 billion, while combined retail and wholesale used vehicle unit sales decreased by 10.3%.
  • Total retail used units sold decreased by 6.4%, with comparable store used unit sales down by 8.3%.
  • Wholesale vehicle unit sales decreased by 15.1%, impacted by retail selectivity and market depreciation.
  • Net earnings per diluted share decreased to $0.79, down from $1.72 in the prior year.

Headline financials

Total Revenue

$8.14B

Previous: $7.99B+2.0%
EPS (adj)

$0.79

Previous: $1.72-54.1%
Wholesale vehicle unit sales

159.7K

Previous: 188.1K-15.1%
Used vehicle avg selling price

$28.7K

Previous: $26.1K+9.6%
Wholesale vehicle avg selling price

$10.2K

Previous: $8.7K+17.0%
Used vehicle gross profit

$2.28K

Previous: $2.19K+4.4%
Wholesale vehicle gross profit

$881.00

Previous: $1.01K-12.3%
Other gross profit

$468.00

No prior period
Used vehicle unit sales

216.9K

Previous: 231.8K-6.4%
Capital Expenditures

-$204M

Previous: -$138M-48.3%
Free Cash Flow

-$78.6M

Previous: $147M-153.3%
Net Income

$126M

Previous: $285M-55.9%
Operating Income

$6.53M

Previous: $193M-96.6%
Gross Profit

$737M

Previous: $815M-9.6%
Cash & Equivalents

$56.8M

Previous: $58.1M-2.3%
Total Assets

$26.5B

Previous: $24.5B+8.2%
Stock-Based Comp

$24.6M

Previous: $31.7M-22.5%

Revenue & EPS history

CarMax · Revenue · Quarterly

$8.14B

Q2 2023+2%vs Q2 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

CarMax · $8.14B total across 3 segments · Q2 2023

  • Used vehicle sales
    $6.28B+2.9%
  • Wholesale vehicle sales
    $1.69B-0.7%
  • Other sales and revenues
    $170M-6.6%

Forward guidance

CarMax did not provide specific forward guidance in this earnings report. However, they plan to release results for the third quarter ending November 30, 2022, on Thursday, December 22, 2022.

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 2023

Historical avgQ2 2023

-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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