This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CarMax Reports Quarterly Results

Stocks in this article: KMX

CarMax, Inc. (NYSE:KMX) today reported results for the third quarter ended November 30, 2011.

  • Net sales and operating revenues increased 7% to $2.26 billion from $2.12 billion in the third quarter of last year.
  • Comparable store used unit sales declined 3% in the third quarter compared with a 16% increase in the prior year period.
  • Total used unit sales decreased 1%.
  • Total wholesale unit sales increased 13%.
  • CarMax Auto Finance (CAF) income rose 12% to $62.6 million.
  • Net income was $82.8 million, or $0.36 per diluted share, compared with $82.4 million, or $0.36 per diluted share, earned in the third quarter of fiscal 2011.

Third Quarter Business Performance Review

“We are pleased to report another quarter of strong profits, despite a difficult sales comparison and the continued sluggish economy,” said Tom Folliard, president and chief executive officer. “We remain committed to investing in our long-term growth strategy. We now plan to open 10 stores in fiscal 2013 and are pleased to announce our plan to open between 10 and 15 stores per year during each of the following three fiscal years.”

Sales . We believe the 3% decline in comparable store used units resulted from several factors, including our toughest sales comparison in many quarters and the continuation of weak economic conditions and low consumer confidence for much of the third quarter. Our average used vehicle selling price remained higher than the prior year, reflecting the continuing effect of the tight supply of late-model used vehicles on our acquisition costs. However, average retails have begun to moderate from earlier this year due to shifts in mix, as well as recent declines in industry wholesale pricing.

Wholesale unit sales increased 13% compared with the third quarter of fiscal 2011. Similar to the last several quarters, our wholesale volumes benefited from a strong increase in appraisal traffic.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs