Mixed Sales Reduce Revenue for CarMax
US Equity Market Update as of September 22
CarMax’s price movement
CarMax (KMX) has a market cap of $12.42 billion. CarMax’s YTD (year-to-date) price movement is not stable and is a mix of ups and downs. After the 2Q16 earnings report, KMX fell 4.69% to close at $59.72 per share.
The price movement on weekly, monthly, and year-to-date bases is -1.81%, 0.23%, and -10.30%, respectively. It’s trading at -3.77% on a trailing five-day basis.
Technically, CarMax has broken the support of 20-day and 50-day moving averages in 2015. Currently, it’s trading at 0.54% below the 20-day moving average, 4.65% below the 50-day moving average, and 9.89% below the 200-day moving average.
The First Trust Consumer Discretionary AlphaDEX ETF (FXD) invests 1.30% of its holdings in CarMax. FXD tracks an index of large and mid-cap US consumer discretionary stocks. The underlying index uses multifactor selection and tiered equal weighting. The YTD of FXD is -0.13%.
The following are CarMax’s competitors and their market cap:
AutoNation (AN) – $6.79 billion
Penske Automotive Group (PAG) – $4.55 billion
Lithia Motors (LAD) – $2.94 billion
KAR Auction Services (KAR) – $5.11 billion
Performance of CarMax in 2Q16
According to CarMax’s 2Q16 earnings report, net revenue is $3,884.913 million, a decrease of 3.2% on a quarterly basis. The unit sales of used vehicles has decreased by 4.8%. New vehicles and wholesale vehicles have increased by 1.4% and 4.8%, respectively.
The company has reported net income and EPS (earnings per share) of $172.228 million and $0.82, respectively. The debt-to-equity ratio has increased to 3.34, an increase of 5.3%, in 2Q16.
About CarMax
CarMax is the largest retailer of used vehicles. It operates 153 used car stores in 76 markets. The CarMax consumer offer features low, no-haggle prices, a broad selection of CarMax Quality Certified used vehicles, and superior customer service.
Browse this series on Market Realist: