CarMax (KMX) 2021 Q4 Financial Results

CarMax Inc (NYSE:KMX) was initially established as a subsidiary of leading consumer electronics retailer Circuit City. Few years later, CarMax separated from Circuit City to become an independent entity. It currently markets and sells a variety of used vehicles, as well as related products and services. The quality and competitive prices of its vehicles helped CarMax to become the biggest retailer of used cars in the U.S.

The Richmond, Virginia-based company recently announced mixed financial results for the fourth quarter.  CarMax reported an adjusted profit of $1.27 per share for the three months ended February 28, down from $1.30 per share in the comparable quarter of 2020. Analysts on average were looking for an adjusted profit of $1.24 per share.

Revenue for the quarter increased 4.1 percent to $5.16 billion, slightly shy of $5.17 billion projected by analysts. Total wholesale vehicle unit revenue in the quarter slipped 1.2 percent on a year-over-year basis. Meanwhile, selling, general and administrative expenses jumped 14.7 percent to $556.1 million in the quarter.

Commenting on the results, CEO Bill Nash said, “We are extremely proud of what we have accomplished this year and how the strategic changes we have made to our business position us for accelerated growth across retail, wholesale and CarMax Auto Finance.”

Separately, CarMax announced that it has inked a definitive deal to buy Edmunds, which operates an automotive information website. The company intends to expand its digital capabilities and reach with the latest acquisition. Edmunds will keep operating as an independent firm after the deal is closed.

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