CarMax Reports Flat Earnings
Auto retailer CarMax Inc. posted flat earnings amid disappointing used-car sales, and the company said that second-quarter earnings are expected to be weaker than analysts expected. CarMax said earnings for the first quarter ended May 31 totaled $35.3 million, or 33 cents per share, compared with $35.3 million, or 34 cents per share, in the year-ago quarter. In May, CarMax cut its earnings forecast to a range of 30 cents to 32 cents per share, down from 33 cents to 35 cents, citing slow used-car sales, rising interest rates, and high gasoline prices. Analysts had expected CarMax earnings to range between 30 cents and 32 cents per share, with an average forecast of 31 cents per share, according to Reuters Estimates. CarMax said it expected second-quarter earnings in the range of 30 cents to 35 cents per share. Wall Street analysts forecast a range of 34 cents to 40 cents with an average estimate of 37 cents, according to Reuters Estimates. CarMax said it gave a wide range for its second quarter forecast due to volatile used-car sales, and the company chose not to provide an outlook for the second half of the year until the market is more consistent. Total sales rose to $1.32 billion in the first quarter from $1.17 billion a year ago.