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Q4 Earnings Recap: CarMax (NYSE:KMX) Tops Vehicle Retailer Stocks

KMX Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at vehicle retailer stocks, starting with CarMax (NYSE: KMX).

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 5 vehicle retailer stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.7% since the latest earnings results.

Best Q4: CarMax (NYSE: KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $5.79 billion, down 6.9% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

“I’m honored to serve as Interim President and CEO at this important juncture for CarMax. Our unmatched physical and digital infrastructure, beloved national brand, and award-winning culture provide us with incredible advantages. Despite these advantages, based on recent results, it is clear CarMax needs change,” said David McCreight, Interim President and Chief Executive Officer.

CarMax Total Revenue

CarMax achieved the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 3.5% since reporting and currently trades at $42.50.

Is now the time to buy CarMax? Access our full analysis of the earnings results here, it’s free.

Lithia (NYSE: LAD)

With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.20 billion, flat year on year, falling short of analysts’ expectations by 0.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.

Lithia Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.8% since reporting. It currently trades at $281.47.

Is now the time to buy Lithia? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Camping World (NYSE: CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.17 billion, down 2.6% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

As expected, the stock is down 20.7% since the results and currently trades at $8.61.

Read our full analysis of Camping World’s results here.

AutoNation (NYSE: AN)

With a vast network of over 300 locations strategically concentrated in America's Sunbelt region, AutoNation (NYSE: AN) operates one of America's largest networks of automotive dealerships, selling new and used vehicles, parts, and services across multiple brands.

AutoNation reported revenues of $6.93 billion, down 3.9% year on year. This number came in 3.6% below analysts' expectations. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EBITDA estimates and a miss of analysts’ revenue estimates.

AutoNation had the weakest performance against analyst estimates among its peers. The stock is down 3.6% since reporting and currently trades at $196.62.

Read our full, actionable report on AutoNation here, it’s free.

Penske Automotive Group (NYSE: PAG)

With a diverse global network spanning the US, UK, Canada, Germany, Italy, Japan, and Australia, Penske Automotive Group (NYSE: PAG) operates automotive and commercial truck dealerships across the globe, selling new and used vehicles while providing service, parts, and financing options.

Penske Automotive Group reported revenues of $7.77 billion, flat year on year. This result topped analysts’ expectations by 2.2%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Penske Automotive Group pulled off the fastest revenue growth among its peers. The stock is down 4.1% since reporting and currently trades at $157.70.

Read our full, actionable report on Penske Automotive Group here, it’s free.

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