CarMax (KMX), Bed Bath (BBBY) stocks dive after quarterly earnings

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CarMax (KMX), Bed Bath (BBBY) stocks dive after quarterly earnings

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 CarMax (KMX), Bed Bath (BBBY) stocks dive after quarterly earnings
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Highlights

  • CarMax Inc. (NYSE: KMX) reported revenue of US$7.98 Bn in Q2, FY22.
  • Net sales of Bed Bath & Beyond Inc. (NASDAQ: BBBY) were US$1.98 Bn in Q2, FY21.
  • The stock price of KMX rose by 56.97% YTD.

Stocks of CarMax Inc. (NYSE: KMX) and Bed Bath & Beyond Inc. (NASDAQ: BBBY) were gaining attention on Wall Street Thursday after reporting their quarterly earnings before the opening bell. However, KMX declined around 7%, while BBBY tumbled over 15% after the results.

KMN traded at US$135.979, down 7.15%, while BBBY traded at US$18.67, down 15.90%, at around 8 am ET, from their previous closing prices.

Here we evaluate the earnings of the companies.

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CarMax Inc. (NYSE: KMX)


CarMax is a Richmond, Virginia-based holding company that provides retail services for used vehicles.

The company’s total sales and revenue came in at US$7.98 billion in Q2, FY22, against US$5.37 billion in Q2, FY21. The gross profit was US$815.5 million against US$752.1 million in Q2, FY21.

In addition, its net earnings were US$285.26 million, or US$1.75 per basic share, compared to US$296.69 million, or US$1.82 per basic share in Q2, FY21.

CarMax’s market cap is US$23.86 billion, while the P/E and the forward P/E one-year ratios are 20.6 and 19.19, respectively. The EPS is US$7.11. The stock’s 52-week highest and lowest prices were US$147.73 and US$84.70, respectively, while the share volume was 1,565,998 on Sep 29.

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Earnings Alert: CarMax Inc. (KMX) and Bed Bath & Beyond Inc. (BBBY)

Bed Bath & Beyond Inc. (NASDAQ: BBBY)

Bed Bath & Beyond is a retail store operator based in New Jersey. It sells a range of products for domestic purposes and home furnishing.

The net sales dropped from US$2.68 billion in Q2, FY20 to US$1.98 billion in Q2, FY21. Likewise, the gross profit declined from US$987.53 million in Q2, FY20, to US$601.06 million in Q2, FY21.

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The company's operating loss was US$84.11 million in Q2, FY 21, compared to an income of US$270.54 million in Q2, FY20. It reported a net loss of US$73.21 million, or a loss of US$0.72 per diluted share, compared to an income of US$217.90 million, or US$1.75 per diluted share in the same quarter of the prior year.

The company projected its net sales to be between US$8.1 billion and US$8.3 billion for full fiscal 2021. It also expects its adjusted EBITDA to be between US$425 million and US$465 million while projecting its adjusted EPS to be between US$0.70 and US$1.10 per diluted share.

The market cap of the company is US$2.32 billion, the P/E ratio is 30, and the forward P/E one year is 14.42. Its EPS is US$0.74.

The highest and lowest stock prices of the firm for the last 52 weeks were US$53.90 and US$14.31, respectively. Its share volume on September 29 was 5,132,101.

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Bottomline

The two companies have registered gains in their share prices in the recent trading sessions, with consumer spending gradually picking up and markets recovering from the pandemic-hit slump. However, the stock value of CarMax Inc (KMX) and Bed Bath & Beyond Inc. (BBBY) surged 56.97 percent and 23.13 percent YTD, respectively. Nevertheless, investors should evaluate the companies carefully before investing in stocks.

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