The leading used auto retailer reported earnings of $1.44 per share for $7.687 billion for the quarter ended May 31st. And on a year-over-year basis, CarMax’s earnings are down about 8% and revenue is down 17%.
Analysts braced for CarMax earnings of 79 cents per share and revenue of $7.495 billion, FactSet shows.
CarMax used retail unit sales are down 9.6% from a year ago. Wholesale units fell 13.6% year over year. Comparable store used unit sales were down 11.4% from a year ago.
CarMax said in an earnings release that SG&A (selling, general and administrative) costs fell 14.8%, or $96.9 million, to $559.8 million, driven by proceeds from legal settlement and active cost management.
“Our intentional actions are driving improving trends in the business, despite a challenging macro environment,” CarMax CEO Bill Nash said in the release.
CarMax stock, CVNA stock
CarMax shares jumped 10% to 86.21 in the stock market today. KMX shares topped the 73.57 cup handle buy point in May and are quite a stretch.
Upstart competitor Carvana fell 16.1 percent on Friday. CVNA stock is up about 350% year-to-date amid an improving financial outlook.
On Wednesday, and Wall Street Journal I reported on a potential takeover attempt at the beleaguered auto, home and renters insurer root (root), at a huge premium. But the report said the bidder, Embedded Insurance, was unsuccessful in negotiating a deal.
Carvana, an online used car sales company, invested in Root in 2021. The companies have partnered to provide auto insurance to Carvana customers.
ROOT stock is down 14.8% on Friday after surging on Wednesday.
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