CarMax Raises Long-Term Targets

(RTTNews) - CarMax, Inc. (KMX) said the company now targets to sell between 2 million and 2.4 million vehicles through its combined retail and wholesale channels by fiscal 2026. The company also expects to generate between $33 billion and $45 billion in revenue by fiscal 2026. CarMax re-affirmed the growth of its nationwide share of the age 0-10 used vehicle market to more than 5% by the end of calendar 2025.

In May 2021, the company introduced 5-year financial targets, including: selling 2 million vehicles through combined retail and wholesale channels by fiscal 2026; generating $33 billion in revenue by fiscal 2026; and growing nationwide share of the age 0-10 used vehicle market to more than 5% by the end of calendar 2025.

CarMax currently plans to open ten stores in fiscal 2023, including expected entry into the New York metro market. The company estimates capital expenditures will increase to approximately $500 million in fiscal 2023 from $308.5 million in fiscal 2022. The increase in planned capital spending in fiscal 2023 largely reflects spending to support future long-term growth, the company noted.

The company's fourth quarter earnings totaled $159.84 million, or $0.98 per share compared to $209.95 million, or $1.27 per share, a year ago. Analysts on average had expected the company to earn $1.25 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 49.0% to $7.69 billion from $5.16 billion last year. Analysts on average had estimated $7.5 billion in revenue. Combined retail and wholesale used vehicle unit sales were 343,413, an increase of 11.3% from a year ago.

Shares of CarMax were down 4% in pre-market trade on Tuesday.