Albany, New York (09/23/2014) – A company engaged in auto financing, and merchandising, CarMax, Inc (NYSE:KMX) said that it could realize better average selling prices for its used vehicles, as well as, wholesale vehicles in the second quarter. However, its average selling prices or ASP witnessed a downtrend in its new vehicles division.
ASP Rises
The company said that its used vehicles’ ASP grew 4.1% to $20,215 in the second quarter from $19,428 while its wholesale vehicles ASP advanced a similar 4.1% uptick to $5,249 from $5,044 in the prior year quarter, its statement indicated. However, the disappointment came from the new vehicles division, which recorded 1.2% fall in ASP to $26,991 from $27,313 in the previous year quarter.
As far as the vehicle sales changes, CarMax, Inc (NYSE:KMX) said that its used vehicle units accounted for 6.3% compared to 21.1% while, in terms revenue, it was 10.6% versus 20.4% in the prior year quarter. Similarly, its wholesale vehicle units represented 7.4% on top of 10.2% last year whereas, in revenue terms, it accounted for 11.7% compared to 8.7% in the year-ago quarter.
Unit Sales
The company said that its new vehicles units recorded an 18.0% growth to 2,581 from 2,187 vehicles while used vehicles advanced 6.3% to 143,325 from 134,854 vehicles. Its wholesale vehicles also registered an uptick of 7.4% to 97,989 vehicles from 91,243 in the previous year quarter.
2Q Results
CarMax, Inc (NYSE:KMX) reported net earnings of $154.52 million, up 10.2% from $149.27 million while earnings increased 12.9% to 70 cents a share from 62 cents a share in the prior year quarter. On average, street analysts estimated the company to earn 67 cents a share.
The company’s net sales and operating revenues advanced 11% to $3.6 billion from $3.25 billion in the year earlier quarter. Analysts’ predicted the company to deliver revenue of $3.57 billion.
While used vehicle sales grew 10.6% to $2.92 billion from $2.64 billion, new vehicle sales increased 16.6% to $69.94 million from $60.0 million. Its wholesale vehicle sales also advanced 11.7% to $530.27 million from $474.9 million in the previous year quarter.
CarMax, Inc (NYSE:KMX) said that it has bought back 4.0 million shares for $201.0 million during the second quarter. The company still has $907.8 million for the share buyback program.
CarMax attributed the results to its strong uptick in store base and improvements in its all divisions apart from its share buyback program.
