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CarMax (KMX) up 4% on Q3 earnings beat

By Joyanta Acharjee

13:42, 22 December 2021

A CarMax store in Indiana
CarMax is the largest retailer of used cars in the US – Photo: Shutterstock

CarMax (KMX) rose 4% pre-market on third-quarter earnings that beat estimates. The used car retailer pointed to growing demand for its positive results.

With more than 220 stores, CarMax is the largest retailer of used cars in the US that offers a variety of vehicle delivery methods including home delivery, express pickup and in-showroom appointments.

For the fiscal third-quarter ended 30 November, net income rose 3% to $269.4m (£22.7m) from $235.3m a year earlier on revenue that jumped 65% to a record $8.5bn from the $5.2bn reported in the same period in 2020.

Diluted earnings per share (EPS) of $1.63 beat analyst estimates of $1.45 on revenue of $7.4bn, according to figures widely available on financial news sites.

All-time record revenues

In pre-market activity on the New York Stock Exchange, CarMax was up 4% at $142.12.


2,020.64 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.30

Oil - Crude

71.61 Price
-0.770% 1D Chg, %
Long position overnight fee -0.0227%
Short position overnight fee 0.0007%
Overnight fee time 22:00 (UTC)
Spread 0.030


0.63 Price
-0.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


15,912.50 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8

“Our top line momentum continued into this quarter and we achieved record levels of third quarter unit sales in both retail and wholesale, generating all-time record revenues. We also bought more cars from customers than ever before,” CarMax’s president and CEO Bill Nash said in a press release. 

“We are excited about the opportunities ahead of us and believe that by delivering the most customer-centric experience in the industry, we will enable sustainable growth and create meaningful long-term shareholder value,” Nash added.

During the quarter, CarMax bought 383,215 vehicles from consumers, a 91% increase on the prior year quarter and sold 415,054 units, up 29% on the prior year quarter.

The company cited growing demand for online offerings, ramping inventory and staffing levels and the continued success of vehicle sourcing directly from consumers for the sales increase.

Read more: More than half of stocks on WallStreetBets lead to losses

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-2.98 -4.370%
65.37 USD
-2.98 -4.370%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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