As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at vehicle retailer stocks, starting with CarMax (NYSE: KMX).
Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.
The 4 vehicle retailer stocks we track reported a stunning Q4. As a group, revenues beat analysts’ consensus estimates by 6.7%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.
CarMax (NYSE: KMX)
Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.
CarMax reported revenues of $6.22 billion, up 1.2% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“I am pleased with the positive momentum that we are driving across our diversified business model. Our solid execution and a more stable environment for vehicle valuations enabled us to deliver robust EPS growth driven by increases in unit sales and buys, solid margins, growth in CAF income, and ongoing management of SG&A,” said Bill Nash, president and chief executive officer.
CarMax delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $80.55.
Is now the time to buy CarMax? Access our full analysis of the earnings results here, it’s free.
Best Q4: America's Car-Mart (NASDAQ: CRMT)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
America's Car-Mart reported revenues of $325.7 million, up 8.7% year on year, outperforming analysts’ expectations by 15.2%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
America's Car-Mart delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.3% since reporting. It currently trades at $45.47.
Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it’s free.
Lithia (NYSE: LAD)
With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.22 billion, up 20.2% year on year, exceeding analysts’ expectations by 2.2%. The results were good as it also locked in a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Lithia delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 19.1% since the results and currently trades at $298.16.
Read our full analysis of Lithia’s results here.
Camping World (NYSE: CWH)
Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.
Camping World reported revenues of $1.20 billion, up 8.6% year on year. This result topped analysts’ expectations by 6.6%. It was a stunning quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
The stock is down 23.7% since reporting and currently trades at $15.85.
Read our full, actionable report on Camping World here, it’s free.
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