CarMax Crushes Q1 Earnings Estimates - CarMax (NYSE:KMX)

CarMax Inc KMX reported first-quarter FY22 sales of $7.7 billion, up 138.4% year-on-year, beating analyst consensus of $6.2 billion.
The comparable store used unit sales increased 99.1% Y/Y.
A robust used auto demand environment, supported by federal stimulus checks and a shift in the timing of customer tax refunds, helped increase sales.
Combined retail and wholesale used vehicle unit sales were 452,188, an increase of 128% Y/Y.
Bought vehicles from consumers increased 236% Y/Y to 341,275.
Gross profit was $924.5 million, up 161% Y/Y. EBIT was $567.3 million.
EPS of $2.63 was up 1,853.3% Y/Y, beating the consensus estimate of $1.63.
Selling, general and administrative expense was 59.9% of gross profit, up 70.5% Y/Y due to a planned increase in advertising expense.
Cash and equivalents totaled $378 million as of May 31, 2021.
“We delivered exceptional results in the first quarter thanks to excellent execution by our team in a high-demand environment,” said Bill Nash, Chief Executive Officer.
Guidance: CarMax reaffirmed long-term targets for sales of $33 billion, 2 million units per year by 2026.
Price action: KMX shares traded higher by 6.76% at $127.50 on the last check Friday.