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CarMax Earnings: KMX Stock Drives 10% Lower Despite Better-Than-Expected Q2

CarMax (NYSE:KMX) earnings for the used car retailer’s fiscal second quarter of 2021 have KMX stock taking a beating on Thursday. That is despite its diluted earnings per share of $1.79 easily beating Wall Street’s estimate of $1.08 per share. Its revenue of $5.37 billion also comes in above analysts’ estimate of $5.21 billion.

CarMax (KMX) sign on front of a building
Source: Jonathan Weiss / Shutterstock.com

Let’s take a deeper dive into the most recent CarMax earnings report below.

  • Diluted per-share earnings are up 27.9% from $1.40 in the same period of the year prior.
  • Revenue for the quarter comes in 3.3% higher than the $5.2 billion from the fiscal second quarter of 2020.
  • The CarMax earnings report also has it bringing in a net income of $296.7 million.
  • That’s a 27% improvement over the company’s net income of $233.6 million from the same time last year.

Bill Nash, president and CEO of CarMax, said the following in the earnings report.

“In addition to our strong financial performance, we also completed the roll out of our omni-channel offerings. Consumers want to customize their own journey, and CarMax gives its customers the option to seamlessly do as much, or as little, online and in-person as they want. No other used car retailer is in the position to deliver this iconic experience the way CarMax can.”

CarMax doesn’t include guidance in its current earnings report. That’s no surprise with the novel coronavirus pandemic still in effect. Many companies are withholding outlooks at this time.

KMX stock was down 10.2% as of Thursday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/carmax-earnings-drop-kmx-stock-despite-q2-beat/.

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