NEW YORK (TheStreet) -- CarMax (KMX) shares are down 3.62% to $69.36 in early market trading on Friday after the car retailer reported its first quarter earnings results before the opening bell today.
The Richmond, VA-based company reported first quarter net income of $182 million, or 86 cents per share, beating analysts' earnings expectations of 85 cents per share by one cent.
Revenue for the period failed to meet expectations however, with the company generating $4.01 billion, short of analysts' $4.14 billion guidance.
TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust, commented that,"Used car sales are not as strong as I would like to see."
The top line miss was due in part to falling used vehicle prices which declined 1.6% from the year ago period.
TheStreet Ratings team rates CARMAX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARMAX INC (KMX) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: KMX Ratings Report