Vehicle Retailer Stocks Q3 Teardown: CarMax (NYSE:KMX) Vs The Rest

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the vehicle retailer stocks have fared in Q3, starting with CarMax (NYSE:KMX).

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a decent Q3; on average, revenues missed analyst consensus estimates by 0.8% Inflation (despite slowing) has investors prioritizing near-term cash flows, but vehicle retailer stocks held their ground better than others, with the share prices up 11.7% on average since the previous earnings results.

CarMax (NYSE:KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $6.15 billion, down 5.5% year on year, falling short of analyst expectations by 2.5%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

“Our third quarter performance reflects the continued efforts of the team that have resulted in several quarters of sequential improvements across key components of our business, despite the persistent widespread pressures in the used car industry,” said Bill Nash, president and chief executive officer.

CarMax delivered the slowest revenue growth of the whole group. The stock is down 7.4% since the results and currently trades at $69.15.

Is now the time to buy CarMax? Access our full analysis of the earnings results here, it's free.

Best Q3: Camping World (NYSE:CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.73 billion, down 6.8% year on year, outperforming analyst expectations by 1.7%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Camping World scored the biggest analyst estimates beat among its peers. The stock is up 48% since the results and currently trades at $25.57.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it's free.

Weakest Q3: America's Car-Mart (NASDAQ:CRMT)

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $361.6 million, up 3.1% year on year, falling short of analyst expectations by 3.8%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.

America's Car-Mart had the weakest performance against analyst estimates in the group. The stock is down 22.1% since the results and currently trades at $62.93.

Read our full analysis of America's Car-Mart's results here.

Lithia (NYSE:LAD)

With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $8.28 billion, up 13.5% year on year, surpassing analyst expectations by 1.3%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

Lithia pulled off the fastest revenue growth among its peers. The stock is up 18.4% since the results and currently trades at $295.73.

Read our full, actionable report on Lithia here, it's free.

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The author has no position in any of the stocks mentioned