CarMax, a used vehicle retailer, is planning to announce their third quarter earning this week, probably before the stock market opens. Many seem to believe that CarMax's higher costs may result in lackluster results, however some recent expansions might help protect the company.
Analysts expect earnings of $1.01 per share on revenue of $4.35 billion for the period.
For the last three months, CarMax shares have underperformed the industry, with the stock declining 12% vs. the 25% rise for the sector.
The quarter to be reported saw the seconds’ retailer take an aggressive stance to pursue store expansion. In the first half of fiscal 2019, SG&A expenses shot up 10.3% to $891.8 million due to store openings. For fiscal 2019, CarMax projects capex of around $340 million.
In the previously reported quarter, CarMax beat analyst expectations on sales and earnings numbers, lifting the stock by 3% during premarket hours on reporting day back in September. The used-car retailer reported net sales and operating revenues of $4.7 billion, up 8.6% from the same period last year. Comparable stores used unit sales grew 2.1%, reflecting improved conversion. Net income improved 21.8% to $220.9 million while diluted EPS grew 26.5% to $1.24, benefitting from a lower tax rate.
Read more here
Join us in Bangkok the 19th to the 22nd of March for the Property Portal Watch Conference.