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CarMax Inc. (NYSE: KMX) reported its financial results for the fiscal fourth quarter on Thursday that topped analysts’ estimates for earnings and revenue, despite the renewed COVID-19 restrictions. The health emergency has so far infected more than 31 million people in the United States and caused over half a million deaths.

CarMax shares were reported about 5% down in premarket trading on Thursday. Including the price action, the stock is now exchanging hands at £92.25 per share. In comparison, it had started the year at a lower £67.67 per share. The price action should come in handy if you are interested in investing in the stock market.

CarMax’s Q4 financial results versus analysts’ estimates

CarMax reported £152.23 million of earnings in the fourth quarter that translates to 92 pence per share. The used-car retailer saw a 2.3% annualised decline in Q4 net earnings. CarMax valued its revenue in the recent quarter at £3.74 billion that represents a 4.1% growth on a year over year basis.

In comparison, experts had forecast the company to post a marginally lower £3.73 billion of revenue in the fourth quarter. Their estimate for per-share earnings stood at 90 pence. CarMax also said on Thursday that its auto finance income jumped 68.2% in Q4.

In a separate announcement on Thursday, CarMax said it intends to acquire the remaining stake in Edmunds.

CarMax’s results for the full financial year

For the full financial year, CarMax reported £541.70 million of profit, or £3.28 per share. Its full-year revenue printed at £13.74 billion. In the prior quarter (Q3), the Richmond-headquartered company had recorded £176.18 million of net income.

CEO Bill Nash commented on the financial report on Thursday and said:

“We are extremely proud of what we have accomplished this year and how the strategic changes we have made to our business position us for accelerated growth across retail, wholesale and CarMax Auto Finance. Our omnichannel experience and Love Your Car Guarantee further enhance the most customer-centric offering on the market today. Additionally, the rapid adoption of our online instant appraisal offer positions us to become the largest online buyer of used autos from consumers.”

CarMax performed only slightly upbeat in the stock market last year with an annual gain of roughly 7%. At the time of writing, America’s largest used-car retailer is valued at £15.64 billion and has a price to earnings ratio of 29.24.

The post CarMax tops analysts’ estimates for earnings and revenue in Q4 appeared first on Invezz.



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