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2022-04-12 18:10

CarMax Inc. stock closed roughly 10% down on Tuesday after the company announced its fourth quarter and full-year 2022 financial results.

Financial Results
CarMax's share of the countrywide used vehicle market for people aged 0 to 10 years old climbed to a new high of 4.0% in calendar year 2021, up over 13% from 3.5 percent in calendar year 2020. When compared to the fourth quarter of the previous year, net revenues increased by 48.8% to $7.7 billion. Net revenues climbed by 68.3% to $31.9 billion for the fiscal year.

With the help of company's combined retail and wholesale channels, CarMax sold 343,413 units, up 11.3% from the previous quarter. The company sold 1,630,550 combined units during the fiscal year, gaining 38.4% year over year.

For the fourth quarter fiscal 2022 the gross profit per retail used unit was $2,195, and gross profit per wholesale unit was $1,191, this is an increase of $109 and $201 per unit over the previous quarter.

Gross profit per retail used unit was $2,205 for the fiscal year, and gross profit per wholesale unit was $1,083, and this shows a $92 and $90 year-over-year gains, respectively. In the fourth quarter, CarMax Auto Finance (CAF) income increased 3.0% year over year to $193.8 million, whereas full-year CAF income increased 42.4 % to $801.5 million.

For the fourth quarter, net earnings were $159.8 million, and for the fiscal year, they were $1.2 billion. However for the fourth quarter the net earnings per diluted share were $0.98, down 22.8 % from the fourth quarter of last year. Net earnings per diluted share increased 54.2 % to $6.97 for the fiscal year.

CEO Nash’s remarks
In the earnings press release, CEO and President Bill Nash stated:

"We are extremely proud of our accomplishments in fiscal 2022, which we believe position us well for continued long-term growth across our retail and wholesale business, and CarMax Auto Finance. The roll out and rapid adoption of our online instant appraisal offer has solidified our position as the nation’s largest buyer of vehicles from consumers.”

Capital spending plan of fiscal 2023

We currently plan to open ten stores in fiscal 2023, including our expected entry into the New York metro market. We estimate 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 our future long-term growth, including investments in auction, sales, and production facilities, and technology. The stock is down more than 25% for the year.