Earnings Preview: CarMax, Inc

| About: CarMax Group (KMX)
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Company Profile

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements.

CarMax, Inc (NYSE:KMX) is scheduled to report its first quarter earnings results on June 21, 2012, before market open.

Technical Overview

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CarMax has a market cap of $6.42 billion and it is currently trading around $27.69 with a 52 week range of $22.77 to $35.17. The stock has -9.15% price performance for the year 2012. The following table provides the key financial ratios for CarMax:

Key Ratio Value
Current Ratio 2.87
PEG 1.26
P/E 15.73
Forward P/E 13.47
Profit Margin 4.14%
Return On Assets (ROA) 5.35%
Return On Equity (ROE) 16.84%

Recent News

  • On June 11, 2012, CarMax has officially opened its first auto superstore in Franklin, Tenn. The newest CarMax is located at 4075 Mallory Lane.
  • On May 23, 2012, CarMax announced that The CarMax Foundation has awarded $300,000 in grants to Richmond area nonprofit organizations.
  • On April 19, 2012, CarMax officially opened its first auto superstore in Bakersfield, California, located at 6801 Colony Street.
  • On Apr 16, 2012, CarMax announced that the CarMax Foundation granted more than $2.4 million to nonprofits in the fiscal year that ended on February 29, which is the largest annual donation since its inception in 2003.
  • On April 16, 2012, CarMax announced that CarMax brings 80 new jobs for the company's new store in Fort Myers, Fla.

Analyst Guidance and Earnings History

The first quarter revenues are expected to be $2.84 billion when compared to $2.68 billion for the same quarter last year. Earnings per share for the first quarter are expected to be 54 cents a share, down from 55 cents a share in the year-ago period.

The average price target from analysts for CarMax is $36.91 with average rating is OVERWEIGHT.

Out of the last 4 quarters, CarMax has met or exceeded the EPS estimates 2 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for CarMax:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KMX over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.