Auto Stock Roundup: TSLA Might Miss Delivery Target, KMX Q1 Earnings Top
Zacks Investment Research | Jun 26, 2019 10:11PM ET
Tesla, Inc.’s (NASDAQ:TSLA) vehicle delivery in North America so far in second-quarter 2019 is below its expectation, per Electrek. In fact, the auto giant may fall short of its delivery target for the quarter. Notably, in first-quarter 2019, its vehicle production and delivery number also witnessed sequential declines. However, per the company, there is no shortage of orders and the target is likely to be met.
Recall pertaining to the non-compliance of the emission standards again cropped up. German auto giant Daimler AG (OTC:DDAIF) may have to recall 60,000 Mercedes diesel cars in Germany. Regulators alleged that the software fitted in the cars was aimed at distorting emission test results. The affected models include Mercedes-Benz GLK 220 produced between 2012 and 2015.
CarMax Inc. (NYSE:KMX) reported first-quarter fiscal 2020 results this week. Its earnings and revenues surpassed the Zacks Consensus Estimate. Moreover, both improved on a year-over-year basis.
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1. CarMax posted net earnings per share of $1.59 in first-quarter fiscal 2020 (ended May 31, 2019), up 19.5% from $1.33 in the year-ago period. Moreover, earnings surpassed the Zacks Consensus Estimate of $1.49. The company’s net earnings grew 11.8% year over year to $266.7 million.
Further, net sales and operating revenues in the reported quarter increased 12% year over year to $5.37 billion. The figure beat the Zacks Consensus Estimate of $5.22 billion. Total gross profit rose 12.3% year over year to $742.4 million.
In first-quarter fiscal 2020, CarMax’s used-vehicle sales rose 12.9% from the prior-year period to $4.54 billion as units sold increased 13% to 224,268 vehicles. The average selling price of used vehicles declined 0.1% from the year-ago quarter to $20,050. Comparable store used-vehicle units sold rose 9.5% from the prior-year level. This robust performance reflects improved conversion and solid growth in web traffic.
Wholesale vehicle revenues rose 7.3% from a year ago to $662.4 million in the reported quarter. Units sold increased 6.6% year over year to 120,768 vehicles, courtesy of growth in store base and appraisal buy rate. The average selling price of wholesale vehicles rose 0.2% from the prior-year quarter to $5,213.
Other sales and revenues increased 6.1% year over year. Moreover, the extended protection plan’s (EPP) revenues rose 11.2% from the year-ago level.
CarMax Auto Finance (“CAF”) reported year-over-year growth of 0.3% in income to $116 million in the quarter under review, reflecting collective effects of 7.9% rise in average managed receivables and a slightly lower total interest margin percentage. (Read more: Zacks Investment Research
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