The used car market is experiencing a downturn, with a significant 6.5% drop in used car inventory prices affecting dealerships and car rental companies such as CarMax ($KMX) and Carvana ($CVNA). Despite this, CarMax's third-quarter results surpassed Wall Street forecasts due to strong pricing and cost reductions, as well as an increase in wholesale vehicle sales. However, the company did miss on sales and expressed concerns over consumer affordability. CarMax reported net revenues of $6.1 billion, a decrease of 5.5% from the previous year, and net earnings per diluted share of $0.52, up from $0.24 a year ago. Retail used unit sales dropped by 2.9%, with comparable store sales down 4.1%. In response to the earnings release, CarMax's stock jumped, with an 8.8% increase in pre-market trading and over 12% gain as the company resumed share repurchases. Meanwhile, Micron Technology ($MU) reported a GAAP net loss of $1.23 billion, a non-GAAP net loss of $1.05 billion, and an operating cash flow of $2.52 billion. Revenue was at $4.73 billion, compared to $4.01 billion in the prior quarter and $4.09 billion in the same period last year. Looking ahead, CarMax and Cintas ($CTAS) are set to report earnings before the bell, with other key reports from Apogee Enterprises ($APOG), Paychex ($PAYX), Carnival ($CCL), and Nike ($NKE). Nike, in particular, is drawing attention as options traders make bullish bets ahead of its earnings report after the bell.
Just as a reminder: $KMX -> Gross Margin: 10% Operating Margin: 1.3% This is the BRUTAL reality of the Used Car business! And they sell 14% online, source 80% from consumers... Max cost efficiency! $CVNA $CACC https://t.co/6Ew33QsUCi
CarMax quarterly profit overtakes estimates on cost cuts https://t.co/U4bPf9bhrr https://t.co/DbYqdkOyf5
Nike $NKE reports after the close. Options are pricing about a 5.8% move. The last 3 earnings saw moves of +6.7%, -2.7% and -4.9%. There was a buyer of the +125/-130c call spread (expiring tomorrow) earlier 4k times (h/t @OptionsHawk) . The second chart shows that trade… https://t.co/BizME1kqTZ
$KMX CarMax Inc.’s third-quarter results exceeded Wall Street expectations on strong pricing and cost cuts, along with growth in wholesale vehicle sales. Missed on sales and worried about affordability for a consumer CarMax on Thursday posted adjusted earnings per share of 52…
CarMax Inc.’s third-quarter results exceeded Wall Street expectations on strong pricing and cost cuts, along with growth in wholesale vehicle sales. Missed on sales and worried about affordability for a consumer CarMax on Thursday posted adjusted earnings per share of 52 cents,…
CarMax doubles Q3 profit even as cars are a tough sell; Wall Street's happy https://t.co/IR5mDsWEdv
Nike $NKE with 4000 weekly $125 calls bought into earnings spread with $130 calls
CarMax $KMX has gained over 12% this morning as the company resumed share repurchases after a year! Q3 results came in mixed, with an EPS beat. What lies ahead for the stock?? #stocks #stockmarket https://t.co/uRdilkJ5oY
$KMX (+8.8% pre) CarMax's stock jumps after profit beat expectations, while sales fell short - MW https://t.co/5apzh2b6QA
CarMax’s third-quarter results exceeded Wall Street expectations on strong pricing and cost cuts https://t.co/U0FIc6DWrq
$KMX Earnings: - Net revenues were $6.1 billion, down 5.5% compared with the prior year third quarter. - Net earnings per diluted share of $0.52 versus $0.24 a year ago. - Retail used unit sales decreased 2.9% and comparable store used unit sales declined 4.1% from the prior… https://t.co/toYe8n34o2
WOW Not good for the Used Car market. NADA is used as baseline to estimate value -> Often Used for LTV calculations!! $CVNA $KMX $CACC💣💣 https://t.co/oAn54hyrfm
6.5% drop in used car inventory prices is painful for any dealership or car rental co $KMX $CVNA $HTZ https://t.co/BLzdv9KNuZ
6.5% drop in used car inventory is painful for any dealership or car rental co $KMX $CVNA $HTZ https://t.co/BLzdv9KNuZ
Just Buy It? Options traders are making bullish bets on $NKE. @Michael_Khouw breaks down the options ahead of tomorrow's earnings. @optionsaction https://t.co/FAXDkTyg3F
Countdown to Nike earnings! The sportwear maker set to report tomorrow after the bell. BMO's Simeon Siegel on what he's expecting to hear and what the report could signal about the consumer. $NKE https://t.co/gWZtMidEAr
Key Earnings Reports Tomorrow Before the Open: Apogee Enterprises $APOG CarMax $KMX Cintas $CTAS Paychex $PAYX After the Close: Carnival $CCL Nike $NKE For more details, start a trial at https://t.co/H4p1RcpfIn.
$MU Earnings: - Revenue of $4.73 billion versus $4.01 billion for the prior quarter and $4.09 billion for the same period last year - GAAP net loss of $1.23 billion, or $1.12 per diluted share - Non-GAAP net loss of $1.05 billion, or $0.95 per diluted share - Operating cash flow… https://t.co/vnsIxshqpE
CarMax and Cintas report earnings before the bell tomorrow. Shareholders @terranovajoe and @Karen_Firestone share what they're watching. #TheSetup $KMX $CTAS https://t.co/jn5kDa2FWA
Used car volume falling... was up in 21 and 22. $CVNA https://t.co/EewUBl1M61