{"id":6124,"date":"2023-04-11T15:00:50","date_gmt":"2023-04-11T15:00:50","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/carmax-quarterly-profit-beats\/"},"modified":"2023-04-11T15:04:16","modified_gmt":"2023-04-11T15:04:16","slug":"carmax-speeds-past-quarterly","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/carmax-speeds-past-quarterly\/","title":{"rendered":"CarMax speeds past quarterly profit estimates on cost cuts"},"content":{"rendered":"<p>By Nathan Gomes<\/p>\n<p>(Reuters) -CarMax Inc on Tuesday posted fourth-quarter profit above analysts&#8217; estimates as cost cutting measures helped the pre-owned car retailer soften the blow from a slowdown in demand for vehicles.<\/p>\n<p>Shares of the Richmond, Virginia-based company rose over 9% at $71.81 in morning trade. \u00a0\u00a0<\/p>\n<p>CarMax had in December implemented a series of measures to help cut costs, such as slowing down on acquiring cars for its inventory, trimming marketing and capital expenses, and pausing hiring for its corporate office.<\/p>\n<p>&#8220;Our deliberate steps to navigate the pressures facing the used car industry are driving sequential improvements in our business,&#8221; CEO William Nash said on Tuesday.<\/p>\n<p>Demand for used cars was dented over the past year due to higher borrowing costs and soaring commodity and gasoline prices, weighing on CarMax&#8217;s results.<\/p>\n<p>However, with leasing rates on the rise and new-car prices nearing the $50,000 mark, most consumers have no choice but to seek options in the used-car market, sustaining some demand.<\/p>\n<p>That demand for vehicles and related services helped auto retailer AutoNation Inc post a better-than-expected quarterly profit when it reported earnings in February.<\/p>\n<p>Dealers, who had previously acquired cars at higher rates at the peak of the COVID-19 pandemic, when the supply of new cars was impacted, have now either rolled out discounts on models or are holding onto stock.<\/p>\n<p>There is currently a scarcity of affordable cars on the used market, despite strong demand for lower-priced vehicles, Stephens analyst Daniel Imbro said.<\/p>\n<p>&#8220;We did expansive price elasticity testing and determined that we could have sold a few more cars, but we actually would have made less money,&#8221; Nash said in a post-earnings call with analysts.<\/p>\n<p>CarMax&#8217;s adjusted fourth-quarter profit came in at 44 cents per share, ahead of Refinitiv IBES estimates of 24 cents per share.<\/p>\n<p> (Reporting by Nathan Gomes in Bengaluru; Editing by Pooja Desai)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/carmax-speeds-past-quarterly\/illustration-shows-carmax-logo\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3A0CD-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3A0CD-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Nathan Gomes (Reuters) -CarMax Inc on Tuesday posted fourth-quarter profit above analysts&#8217; estimates as cost cutting measures helped the pre-owned car retailer soften the blow from a slowdown in demand for vehicles. Shares of the Richmond, Virginia-based company rose over 9% at $71.81 in morning trade. \u00a0\u00a0 CarMax had in December implemented a series [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":6125,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-6124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3A0CD-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/6124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=6124"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/6124\/revisions"}],"predecessor-version":[{"id":6330,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/6124\/revisions\/6330"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/6125"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=6124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=6124"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=6124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}