Used vehicle retailer CarMax revealed financial first-quarter results that exceeded Wall Street forecasts. Shares are up as a result, however, there are still some alarming market indicators for investors to consider regarding the automotive industry.
CarMax reported $9.3 billion in sales with $1.56 in earnings per share. Wall Street anticipated $9.1 billion in sales and $1.51 per share earnings. The price of CarMax stock recently increased by 8% to $99.21.
Results appear to be significantly better than the business’ fiscal fourth quarter. At that time, CarMax made 98 cents per share on sales of $7.7 billion. Last year, CarMax had $2.63 in profit per share in the first quarter of fiscal 2022 from revenues of $7.7 billion.
Gross profit per unit of used vehicles sold in the first quarter of 2021 was $2,205. Gross profit per unit sold was $2,195 in the previous quarter (Q4 2021). Gross profit per used car for the most recent fiscal first quarter was $2,339.
CEO William Nash stated on the company’s earnings call, “Our performance was driven by the same macro factors that led to marketwide decline in used auto sales during the quarter, including lapping material stimulus benefits paid in the prior year, widespread inflationary pressures, including challenges to vehicle affordability and lower consumer confidence.”
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