CarMax is set to announce its second-quarter results on Thursday morning. Here are the key details you need to know about:
CarMax is expected to report a net income of $124.1 million for the quarter, a decrease from $125.9 million in the same period last year.
The Richmond-based used-car retailer is projected to achieve a quarterly profit of 77 cents per share, down from 79 cents per share a year ago. Analysts surveyed by FactSet anticipate an adjusted profit of 75 cents.
Revenue is expected to reach $7.02 billion, a decline from $8.14 billion.
What to Watch
CarMax’s CEO, Bill Nash, stated in June that the affordability of used cars was impacting demand. To address this, the company has been focusing on selling older, more affordable vehicles. As used-car prices continue to decrease, investors will be watching to see if this attracts buyers back into the market.
There is a risk that labor strikes by the United Auto Workers against automakers could increase used-car prices by limiting the supply of new cars. While this may worsen the affordability challenge, it could also improve profit margins for dealerships. CarMax executives might offer some insight into the impact of these strikes.