CarMax Inc. (KMX) shares are up $3.14, or 4.56%, to $71.53 in pre-market trading Thursday after the company reported its fourth quarter earnings results.
The used car dealership chain reported non-GAAP earnings of $0.65 per share on revenues of $3.51 billion, up 14.2% from $3.07 billion a year ago. Analysts were expecting EPS of $0.60 on revenues of $3.50 billion.
For the year ended Feb. 28, 2015, the company reported profit of $597.4 million, or $2.73 per share. Net sales and operating revs were reported as $14.27 billion, a 13.5% increase from $12.57 billion from the corresponding period in 2014. CarMax said used unit sales in comparable stores increased 7.0% in Q4 and 4.4% in the fiscal year.
“We had another great year, achieving several new milestones,” said in a statement Tom Folliard, president and CEO. “Since opening our first store in 1993, we’ve now retailed well over 5 million used cars and 3 million wholesale cars, which is a testament to the strength of our brand. In fiscal 2015, the continued strong performance of our used, wholesale and CAF operations, along with the growth of our store base and our ongoing share repurchase program, contributed to our record earnings per share.”
On valuation measures, CarMax Inc. shares, which currently have an average 3-month trading volume of 1.54 million shares, trade at a trailing-12 P/E of 27.53, a forward P/E of 23.50 and a P/E to growth ratio of 1.72. The median Wall Street price target on the name is $69.00 with a high target of $75.00. Currently ticker boasts 6 ‘Buy’ endorsements, compared to 7 ’Holds’ and 1 ‘Sell’.
Profitability-wise, KMX has a t-12 profit and operating margin of 3.90% and 6.40%, respectively. The $14.36 billion market cap company reported $27.6 million in cash in its most recent quarter.
KMX currently prints a one year return of about 44% and a year-to-date return of around 3%.
CarMax Inc. operates as a retailer of used vehicles in the United States. The company, the nation’s largest, was founded in 1993 and is based in Richmond, Virginia.