The corporate reporting period has is going.
Last week, 10 companies from the S&P 500 index reported.
Today, we are going to look at the results of CarMax. Its revenue amounted to $6.0B. It grew by +1.4% compared to the corresponding value for the previous quarter, but did not exceed analysts’ expectations by -20.4%. Let’s analyze the company’s business in more detail.
CarMax is the largest seller of used cars in the United States, operating through a network of about 250 retail stores. In 2024, the company sold 1333 thousand used cars. The company was founded in 1993 as a division of Circuit City and spun off into an independent company in late 2002.
The company’s revenues increased by +7.1% year-on-year, but decreased by -3.2% quarter-on-quarter. During the reporting period, the company sold 301 thousand vehicles, up +4.9% year-on-year. The company is developing the online sales segment, which accounted for 15% of the company’s sales.
88% of the revenue structure is made up of manufacturing costs, and 12% is gross profit. Over the past quarter, the company earned a profit of +$89M and its market capitalization is $10B.
After the publication of the report, CarMax shares fell by -17.5% to $68 per share. Market participants are dissatisfied with the company’s financial results and reacted negatively to the company’s development prospects.
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter
