NYSE$KMX

CarMax Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

CarMax's financial performance declined in Q2 2024, with revenue and unit sales decreasing, but margins remained strong and SG&A expenses were reduced.

CarMax reported a decrease in net revenues by 13.1% to $7.1 billion, alongside declines in retail used unit sales and wholesale units. However, the company maintained strong margins in both retail and wholesale, reduced SG&A expenses by 12.1%, and intends to resume share repurchases in the third quarter.

  • Net revenues decreased by 13.1% year-over-year to $7.1 billion.
  • Retail used unit sales declined by 7.4%, and wholesale units decreased by 11.2%.
  • Gross profit per retail used unit was $2,251, consistent with the prior year, while wholesale gross profit per unit increased to $963.
  • SG&A expenses decreased by 12.1% due to cost management efforts.

Headline financials

Total Revenue

$7.07B

Previous: $8.14B-13.1%
EPS (adj)

$0.75

Previous: $0.79-5.1%
Wholesale vehicle unit sales

141.8K

Previous: 159.7K-11.2%
Used vehicle avg selling price

$27.5K

Previous: $28.7K-4.0%
Wholesale vehicle avg selling price

$8.92K

Previous: $10.2K-12.3%
Used vehicle gross profit

$2.25K

Previous: $2.28K-1.4%
Wholesale vehicle gross profit

$963.00

Previous: $881.00+9.3%
Other gross profit

$538.00

Previous: $468.00+15.0%
Used vehicle unit sales

200.8K

Previous: 216.9K-7.4%
Capital Expenditures

-$210M

Previous: -$204M-2.8%
Free Cash Flow

-$91.5M

Previous: -$78.6M-16.5%
Net Income

$119M

Previous: $126M-5.8%
Operating Income

$36.8M

Previous: $6.53M+464.3%
Gross Profit

$697M

Previous: $737M-5.5%
Cash & Equivalents

$521M

Previous: $56.8M+817.9%
Total Assets

$27.3B

Previous: $26.5B+3.1%
Stock-Based Comp

$33.1M

Previous: $24.6M+34.6%

Revenue & EPS history

CarMax · Revenue · Quarterly

$7.07B

Q2 2024-13.1%vs Q2 2023
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

CarMax · $7.07B total across 3 segments · Q2 2024

  • Used vehicle sales
    $5.59B-11.0%
  • Wholesale vehicle sales
    $1.32B-21.8%
  • Other sales and revenues
    $161M-5.7%

Forward guidance

CarMax intends to resume share repurchases in the third quarter of this year.

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 2024

Historical avgQ2 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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