Benzinga | Jun 25, 2021 10:12AM EDT

CarMax Crushes Q1 Earnings Estimates

* CarMax Inc (NYSE:KMX) reported first-quarter FY22 sales of $7.7 billion, up 138.4% year-on-year, beating analyst consensus of $6.2 billion.

* The comparable store used unit sales increased 99.1% Y/Y.

* A robust used auto demand environment, supported by federal stimulus checks and a shift in the timing of customer tax refunds, helped increase sales.

* Combined retail and wholesale used vehicle unit sales were 452,188, an increase of 128% Y/Y.

* Bought vehicles from consumers increased 236% Y/Y to 341,275.

* Gross profit was $924.5 million, up 161% Y/Y. EBIT was $567.3 million.

* EPS of $2.63 was up 1,853.3% Y/Y, beating the consensus estimate of $1.63.

* Selling, general and administrative expense was 59.9% of gross profit, up 70.5% Y/Y due to a planned increase in advertising expense.

* Cash and equivalents totaled $378 million as of May 31, 2021.

* "We delivered exceptional results in the first quarter thanks to excellent execution by our team in a high-demand environment," said Bill Nash, Chief Executive Officer.

* Guidance: CarMax reaffirmed long-term targets for sales of $33 billion, 2 million units per year by 2026.

* Price action: KMX shares traded higher by 6.76% at $127.50 on the last check Friday.