This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEE4N2CD_M.jpg
Shares of CarMax (NYSE:KMX) rallied Friday after the company reported its first-quarter fiscal 2023 earnings, missing earnings per share estimates but beating revenue forecasts.
The used vehicle retailer posted earnings of $1.56 per share, $0.02 below analyst estimates of $1.58. On the other hand, the company’s revenue of $9.3 billion beat consensus estimates of $9.12 billion. Revenue rose 21% compared with the prior year’s first quarter.
CarMax sold 427,257 units through its retail and wholesale channels, down 5.5% year-over-year, with retail used unit sales declining 11% to 240,950 vehicles and comparable store used unit sales falling 12.7%. Wholesale units rose 2.7% to 186,307 vehicles.
The company described the market environment in the first quarter as “challenging.” The decline in vehicle sales was attributed to macroeconomic factors, such as the lapping of stimulus benefits paid in the prior year’s period, inflationary pressures, including challenges to vehicle affordability, and waning consumer confidence.
CarMax’s Auto Finance income declined 15.4% to $204.5 million due to an “$82.2 million swing in the provision for loan losses, reflecting a more normalized environment.”
During the first quarter, CarMax bought 362,280 vehicles from consumers and dealers, up 6.2% versus last year.
Looking ahead, CarMax’s President and Chief Executive Officer Bill Nash said they will now turn their efforts to “further improving the experience for customers and associates by focusing on the seamlessness of our online and in-store offerings.”
At the time of writing, CarMax stock is trading 5% above Thursday’s close.
