CarMax (NYSE:KMX) reported better-than-expected earnings for the first quarter on Wednesday.
The company posted quarterly earnings of $1.31 per share which beat the analyst consensus estimate of 94 cents per share. The company reported quarterly sales of $8.014 billion which beat the analyst consensus estimate of $7.410 billion.
The company introduced a new growth strategy centered on four pillars: improving offerings, enhancing customer experience, maximizing transaction value, and running lean operations. CarMax said the company remains on track to deliver $200 million in SG&A savings this fiscal year.
“I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth. Three months in, I am more convinced than ever that this is a business with everything it needs to thrive,” said Keith Barr, President and Chief Executive Officer.
CarMax shares rose 0.2% to $47.50 in pre-market trading.
These analysts made changes to their price targets on CarMax following earnings announcement.
- B of A Securities analyst John Murphy maintained the stock with an Underperform rating and raised the price target from $40 to $45.
- Mizuho analyst David Bellinger maintained the stock with a Neutral and raised the price target from $38 to $43.
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