) recently purchased a 25 acre Carnegie Row plot on the AutoMile
in Norwood, Massachusetts, according to a source. The company has
invested $20 million for the acquisition and intends to build an
auto superstore there.
The superstore will be build after demolishing the existing
115,000-square-foot building, formerly a Home Quarters Warehouse.
The store will be serving as a showroom and service centre for
400 vehicles. CarMax currently has a dealership in North
The company continues to focus on its plan of opening 10
superstores in fiscal 2013 and 10 to 15 superstores during each
of the following three fiscal years . In the second quarter of
fiscal 2013, the company opened three used car superstores - two
in Ft. Myers, Florida, and the other in Nashville, Tennessee.
CarMax reported a profit of $111.6 million in the second quarter
of fiscal 2013 (ended on August 31, 2012), which was flat
compared with the prior-year quarter. The company's earnings of
48 cents per share in the quarter missed the Zacks Consensus
Estimate of 52 cents.
Net sales and operating revenues increased 6.6% year over year to
$2.76 billion, surpassing the Zacks Consensus Estimate of $2.74
billion. Used vehicle sales improved 8.8% to $2.2 billion due to
higher unit sales. Unit sales went up 8.3% to 111,316 vehicles
and average selling price marginally increased by 0.4% to
CarMax is one of the largest retailers of used vehicles. The
company pioneered the used car superstore concept with the
inauguration of its first store in 1993. It operated around 115
used car superstores in 57 markets as of November 8, 2012.
CarMax competes with
Penske Automotive Group
). The company maintains a Zacks #3 Rank, which translates into a
short-term (1 to 3 months) Hold rating. Currently, we have a
long-term Neutral recommendation on its shares.
AUTONATION INC (AN): Free Stock Analysis
CARMAX GP (CC) (KMX): Free Stock Analysis
PENSKE AUTO GRP (PAG): Free Stock Analysis
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