CarMax Posts 15 Percent Earnings Gain, Shares Drop 8 Percent
CarMax Inc. reported that its FQ4 2007 earnings increased 15 percent on strong sales from both its store-based and Internet sales divisions.
CarMax Inc. reported that its FQ4 2007 earnings increased 15 percent on strong sales from both its store-based and Internet sales divisions. Net earnings went from $36.7 million in Q4 2006 to $42.1 million this year. On the year, earnings jumped 48 percent to $199 million. EPS were up from $0.17 to $0.19, and $0.92 for the year. Total Q4 sales revenues were up 16 percent to $1.88 billion, and up 19 percent on the fiscal year for a total of $7.47 billion in sales. Its CarMax Auto Finance unit saw a 25 percent rise in income to $31.7 million.
CarMax said it plans to open 13 new used car superstores in F2008, along with three additional car buying centers. It forecast F2008 sales growth of 14-20 percent, and EPS of $1.03-$1.14. CarMax fell just short of analyst Q4 earnings estimates of $0.21/share on revenues of $1.9 billion.
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