CarMax KMX will be releasing its next round of earnings this Tuesday, December 22. For all of the relevant information, here is your guide for Tuesday's Q3 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Based on management's projections, CarMax analysts model for earnings of $1.14 per share on sales of $5.02 billion. CarMax EPS in the same period a year ago totaled $1.04. Sales were $4.79 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
The Wall Street consensus estimate for earnings would represent a 9.62% increase for the company. Sales would be up 4.8% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 2020 | Q1 2020 | Q4 2020 | Q3 2019 |
|---|---|---|---|---|
| EPS Estimate | 1.08 | 0.04 | 1.12 | 1.15 |
| EPS Actual | 1.79 | -0.15 | 1.30 | 1.04 |
| Revenue Estimate | 5.21 B | 2.71 B | 4.67 B | 4.67 B |
| Revenue Actual | 5.37 B | 3.23 B | 4.96 B | 4.79 B |
Stock Performance
Shares of CarMax were trading at $98.45 as of December 18. Over the last 52-week period, shares are up 13.17%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. CarMax is scheduled to hold the call at 09:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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