Carmax

Q4 Results Q/Q Comparison:

  • Revenue increased 9.3% to $4.1B
  • GAAP Diluted EPS increased 14.1% to $0.81
  • GAAP Net Earnings increased 8.2% to $152.6M

Business Segments:

  • Used Vehicles
    • Used unit sales increased 13.4% (Comparable store used unit sales increased 8.7%)
    • Average selling price declined 1.6% to $19,435
    • Used vehicle gross profit per unit was flat at $2,134
  • Wholesale Vehicles
    • Wholesale vehicle unit sales declined 1.2%
    • Average selling price declined 6.8% to $4,910
    • Wholesale vehicle gross profit per unit decreased 6.7% to $938
  • CarMax Auto Finance
    • Income declined 10.2% to $82.9M
    • Interest margin declined to 5.7% from 5.9%
    • Averaged managed receivables increased 11.5% to $10.5B
    • Allowance for loan losses of 1.16% (up from 0.99% prior year quarter)

Full-Year FY2017 Results:

  • Revenue increased 4.8% to $15.9B
  • GAAP Diluted EPS increased 7.6% to $3.26
  • GAAP Net Earnings increased 0.6% to $627.0M

Business Segments:

  • Used Vehicles
    • Used unit sales increased 8.3% (Comparable store used unit sales increased 4.3%)
    • Average selling price declined 1.7% to $19,586
    • Used vehicle gross profit per unit was flat at $2,163
  • Wholesale Vehicles
    • Wholesale vehicle unit sales declined 0.7%
    • Average selling price declined 4.1% to $5,106
    • Wholesale vehicle gross profit per unit decreased 5.9% to $926
  • CarMax Auto Finance
    • Income declined 5.9% to $369.0M
    • Interest margin declined to 5.8% from 6.1%
    • Allowance for loan losses of 1.16% (up from 0.99% prior year quarter)

Other Information:

  • In Q4 and full-year, opened 4 and 15 new stores, respectively
  • Plans to open 15 new stores in FY2018 and 13 to 16 in FY2019
  • Repurchased 10.3M shares for $558M (average price of $54.15), during the year

Stock Price: $58
Market Capitalization: $10.9 billion

April 6, 2017

 

 

 


 


 

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