Thursday's ETF with Unusual Volume: RPV
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2025
0mins
Source: NASDAQ.COM
ETF Trading Highlights: On Thursday, Ford Motor saw a 0.6% increase with over 20 million shares traded, while Intel experienced a 2.1% decline with more than 17.8 million shares exchanged; Carmax was the top performer, rising by 2.8%.
Market Commentary: The opinions expressed in the article reflect the author's views and do not necessarily align with those of Nasdaq, Inc.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 52.110
Low
24.00
Averages
33.60
High
37.00
Current: 52.110
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CarMax Set to Announce Q1 Earnings on June 17
- Earnings Announcement Date: CarMax (KMX) is scheduled to release its Q1 earnings on June 17 after market close, with a consensus EPS estimate of $0.98, reflecting a significant 29% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $7.43 billion, down 1.6% year-over-year, which suggests a weakening overall market demand that could impact the company's sales strategies and inventory management.
- Historical Performance Review: Over the past two years, CarMax has beaten EPS estimates 63% of the time and revenue estimates 88% of the time, demonstrating some resilience amid market fluctuations, although recent estimate revisions may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced six upward revisions and one downward, indicating a divergence in analysts' outlook on the company's future performance.
See More
CarMax Unveils Growth Strategy with Strong Q1 Results
- Revenue Growth: CarMax reported a 6.2% increase in net revenues to $8.0 billion for Q1, indicating robust performance despite competitive pressures in the automotive retail sector.
- Unit Sales Performance: Combined retail and wholesale unit sales reached 392,357, up 3.3%, with wholesale unit sales increasing by 8.4%, reflecting effective inventory management and sales strategies.
- Cost Control: SG&A expenses decreased by 3.7% to $635.2 million, primarily due to ongoing cost reduction efforts, which will enhance the company's profitability and operational efficiency moving forward.
- Strategic Framework: CEO Keith Barr introduced a four-pillar strategy aimed at improving customer experience and operational efficiency, thereby driving sustainable growth and strengthening the company's competitive position in the used car market.
See More
CarMax CEO Highlights Need to Improve Customer Experience
- Earnings Beat Expectations: CarMax reported Q1 earnings of $1.31 per share, surpassing analysts' expectations of $0.98, with revenue hitting $8 billion, exceeding the consensus forecast of $7.4 billion, although total gross profit declined by 4.4%, indicating pressure on profitability amid high costs.
- Need for Customer Experience Improvement: CEO Keith Barr highlighted the disconnect between CarMax's online and in-store experiences, which is hurting conversion rates; management plans to leverage technology to reduce reconditioning costs while enhancing operational efficiency to improve the customer journey and fully utilize the nationwide store network.
- Operational Inefficiencies: Barr pointed out that CarMax's core operations are not yet fast and efficient enough, noting that despite moving over two million vehicles annually, the logistics network suffers from “too many unproductive transfers,” which hampers overall operational efficiency.
- Bearish Market Sentiment: On Stocktwits, retail sentiment for KMX is deemed 'bearish,' with message volume surging 8,600%, reflecting investor concerns about the company's future performance, as the stock has lost nearly 27% over the past 12 months.
See More
CarMax Reports 6.2% Sales Growth in Q1 Earnings
- Sales Performance Boost: CarMax reported total sales of $8 billion in Q1, reflecting a 6.2% year-over-year increase, indicating strong market performance that is expected to enhance its competitive position further.
- Vehicle Sales Growth: The company sold approximately 392,000 vehicles, up 3.3% from last year, and while retail unit sales showed slight declines, the overall increase in sales helps solidify its market standing.
- Cost Control Success: SG&A expenses decreased by 4% to $635 million, demonstrating progress in operational efficiency that aids profitability and supports future growth strategies.
- Financial Services Expansion: CarMax Auto Finance penetration rose to 43.3%, an increase of 150 basis points, showcasing growth potential in its financial services segment, which helps enhance customer loyalty and revenue streams.
See More
CarMax Reports Strong Earnings but Shares Drop Amid Turnaround Strategy
- Earnings Beat: CarMax's first fiscal quarter earnings per share reached $1.31, surpassing the expected $0.95, with revenue hitting $8.01 billion against a forecast of $7.42 billion; however, shares fell about 8%, indicating market concerns about future growth.
- Profit Decline: The company's total gross profit was $854.4 million, down 4.4% year-over-year, with retail used vehicle gross profit decreasing by 9.5%, and gross profit per retail used unit at $2,177, reflecting a $230 drop from last year's record, highlighting increasing market pressures.
- New CEO Strategy: New CEO Keith Barr's long-term strategy focuses on enhancing customer experience and operational efficiency, with more details expected in the fall; however, the market remains cautious about the execution of this plan.
- Increased Competitive Pressure: Carvana's shares also dropped over 7% as it announced plans for new franchised stores to enhance service capabilities, intensifying the competitive landscape for CarMax, even as its customers still prefer to see vehicles in person before purchasing.
See More
CarMax's New CEO Faces Growth Challenges Amid Turnaround Plan
- Earnings Beat: CarMax reported Q1 earnings per share of $1.31, exceeding expectations of $0.95, with revenue of $8.01 billion surpassing the $7.42 billion forecast, yet concerns linger about the company's growth potential under current market conditions.
- Declining Margins: The company's total gross profit fell to $854.4 million, down 4.4% year-over-year, with retail used vehicle gross profit decreasing by 9.5%, and gross profit per retail unit dropping to $2,177, indicating significant pressure on profitability amid challenging market dynamics.
- New CEO Strategy: CEO Keith Barr outlined a long-term turnaround strategy focused on enhancing customer experience and operational efficiency, acknowledging that the plan will take years to implement while navigating a tougher market landscape.
- Stock Volatility: Despite a 25% increase in CarMax's stock this year, shares dropped approximately 8% during midday trading on Wednesday following the announcement of the turnaround plan, reflecting investor concerns regarding the company's ability to achieve sustainable growth and cost management.
See More
CarMax Set to Announce Q1 Earnings on June 17
- Earnings Announcement Date: CarMax (KMX) is scheduled to release its Q1 earnings on June 17 after market close, with a consensus EPS estimate of $0.98, reflecting a significant 29% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $7.43 billion, down 1.6% year-over-year, which suggests a weakening overall market demand that could impact the company's sales strategies and inventory management.
- Historical Performance Review: Over the past two years, CarMax has beaten EPS estimates 63% of the time and revenue estimates 88% of the time, demonstrating some resilience amid market fluctuations, although recent estimate revisions may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced six upward revisions and one downward, indicating a divergence in analysts' outlook on the company's future performance.
See More
CarMax Unveils Growth Strategy with Strong Q1 Results
- Revenue Growth: CarMax reported a 6.2% increase in net revenues to $8.0 billion for Q1, indicating robust performance despite competitive pressures in the automotive retail sector.
- Unit Sales Performance: Combined retail and wholesale unit sales reached 392,357, up 3.3%, with wholesale unit sales increasing by 8.4%, reflecting effective inventory management and sales strategies.
- Cost Control: SG&A expenses decreased by 3.7% to $635.2 million, primarily due to ongoing cost reduction efforts, which will enhance the company's profitability and operational efficiency moving forward.
- Strategic Framework: CEO Keith Barr introduced a four-pillar strategy aimed at improving customer experience and operational efficiency, thereby driving sustainable growth and strengthening the company's competitive position in the used car market.
See More
CarMax CEO Highlights Need to Improve Customer Experience
- Earnings Beat Expectations: CarMax reported Q1 earnings of $1.31 per share, surpassing analysts' expectations of $0.98, with revenue hitting $8 billion, exceeding the consensus forecast of $7.4 billion, although total gross profit declined by 4.4%, indicating pressure on profitability amid high costs.
- Need for Customer Experience Improvement: CEO Keith Barr highlighted the disconnect between CarMax's online and in-store experiences, which is hurting conversion rates; management plans to leverage technology to reduce reconditioning costs while enhancing operational efficiency to improve the customer journey and fully utilize the nationwide store network.
- Operational Inefficiencies: Barr pointed out that CarMax's core operations are not yet fast and efficient enough, noting that despite moving over two million vehicles annually, the logistics network suffers from “too many unproductive transfers,” which hampers overall operational efficiency.
- Bearish Market Sentiment: On Stocktwits, retail sentiment for KMX is deemed 'bearish,' with message volume surging 8,600%, reflecting investor concerns about the company's future performance, as the stock has lost nearly 27% over the past 12 months.
See More
CarMax Reports 6.2% Sales Growth in Q1 Earnings
- Sales Performance Boost: CarMax reported total sales of $8 billion in Q1, reflecting a 6.2% year-over-year increase, indicating strong market performance that is expected to enhance its competitive position further.
- Vehicle Sales Growth: The company sold approximately 392,000 vehicles, up 3.3% from last year, and while retail unit sales showed slight declines, the overall increase in sales helps solidify its market standing.
- Cost Control Success: SG&A expenses decreased by 4% to $635 million, demonstrating progress in operational efficiency that aids profitability and supports future growth strategies.
- Financial Services Expansion: CarMax Auto Finance penetration rose to 43.3%, an increase of 150 basis points, showcasing growth potential in its financial services segment, which helps enhance customer loyalty and revenue streams.
See More
CarMax Reports Strong Earnings but Shares Drop Amid Turnaround Strategy
- Earnings Beat: CarMax's first fiscal quarter earnings per share reached $1.31, surpassing the expected $0.95, with revenue hitting $8.01 billion against a forecast of $7.42 billion; however, shares fell about 8%, indicating market concerns about future growth.
- Profit Decline: The company's total gross profit was $854.4 million, down 4.4% year-over-year, with retail used vehicle gross profit decreasing by 9.5%, and gross profit per retail used unit at $2,177, reflecting a $230 drop from last year's record, highlighting increasing market pressures.
- New CEO Strategy: New CEO Keith Barr's long-term strategy focuses on enhancing customer experience and operational efficiency, with more details expected in the fall; however, the market remains cautious about the execution of this plan.
- Increased Competitive Pressure: Carvana's shares also dropped over 7% as it announced plans for new franchised stores to enhance service capabilities, intensifying the competitive landscape for CarMax, even as its customers still prefer to see vehicles in person before purchasing.
See More
CarMax's New CEO Faces Growth Challenges Amid Turnaround Plan
- Earnings Beat: CarMax reported Q1 earnings per share of $1.31, exceeding expectations of $0.95, with revenue of $8.01 billion surpassing the $7.42 billion forecast, yet concerns linger about the company's growth potential under current market conditions.
- Declining Margins: The company's total gross profit fell to $854.4 million, down 4.4% year-over-year, with retail used vehicle gross profit decreasing by 9.5%, and gross profit per retail unit dropping to $2,177, indicating significant pressure on profitability amid challenging market dynamics.
- New CEO Strategy: CEO Keith Barr outlined a long-term turnaround strategy focused on enhancing customer experience and operational efficiency, acknowledging that the plan will take years to implement while navigating a tougher market landscape.
- Stock Volatility: Despite a 25% increase in CarMax's stock this year, shares dropped approximately 8% during midday trading on Wednesday following the announcement of the turnaround plan, reflecting investor concerns regarding the company's ability to achieve sustainable growth and cost management.
See More
