Last week, used vehicle auto retailer CarMax Inc. KMX, recreational vehicle (RV) maker Thor Industries, Inc. THO and auto parts retailer AutoZone Inc. AZO released their quarterly results. While KMX and AZO’s earnings missed estimates, THO’s bottom line exceeded expectations.
Meanwhile, electric vehicle (EV) startup Canoo Inc. GOEV announced that it has expanded into the UK, launching its first European base at Bicester Motion to showcase and test its commercial electric vans. This move taps into the growing UK EV market and strengthens Canoo's global footprint. EV charging company ChargePoint CHPT also made it to the top stories as it highlighted its role in shaping the future of EV charging, focusing on innovative software, faster-charging solutions and seamless integration to improve affordability, reliability, and user experience.
KMX, AZO, THO, GOEV and CHPT currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Important News
CarMax reported second-quarter fiscal 2025 (ended Aug. 31, 2024) adjusted earnings per share of 85 cents, which missed the Zacks Consensus Estimate of 86 cents. The bottom line, however, rose from 75 cents per share recorded in the year-ago period. The auto retailer registered revenues of $7 billion in the quarter under review, which beat the Zacks Consensus Estimate of $6.85 billion. The top line, however, contracted 0.9% year over year.
Selling, general and administrative expenses increased 4.3% from the prior-year quarter to $610.6 million. The firm had cash/cash equivalents and long-term debt of $524.7 million and $1.59 billion, respectively, as of Aug. 31, 2024. During the fiscal second quarter, CarMax repurchased shares worth $106.1 million. As of Aug. 31, 2024, it had $2.15 billion remaining under the share repurchase authorization.
Thor reported earnings of $1.68 per share for the fourth quarter of fiscal 2024 (ended July 31, 2024), which beat the Zacks Consensus Estimate of $1.35. The bottom line remained flat from the year-ago quarter’s earnings. The company registered revenues of $2.53 billion for the fiscal fourth quarter, surpassing the Zacks Consensus Estimate of $2.46 billion. The top line, however, declined 7.4% year over year.
As of July 31, 2024, Thor had cash and cash equivalents of $501.3 million and long-term debt of $1.1 billion. Thor projects its fiscal 2025 consolidated net sales in the range of $9-$9.8 billion, down from $10 billion reported in fiscal 2024. The consolidated gross profit margin is expected in the band of 14.7-15.2%, up from 14.5% reported in fiscal 2024. Earnings per share (EPS) are now expected in the range of $4-$5 compared with $4.94 reported in fiscal 2024.
AutoZone reported earnings of $48.11 per share for fourth-quarter fiscal 2024 (ended Aug. 31, 2024), up 3.5% year over year. However, earnings missed the Zacks Consensus Estimate of $53.31 per share. Net sales grew 9% year over year to $6.20 billion. The top line surpassed the Zacks Consensus Estimate of $6.18 billion. In the reported quarter, domestic commercial sales totaled $1.66 billion, up from $1.50 billion recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) were up 0.2%.
Gross profit increased to $3.26 billion from the prior-year quarter’s $3 billion. Operating profit increased 5.7% year over year to $1.29 billion. As of Aug. 31, 2024, AutoZone had cash and cash equivalents of $298.2 million, up from $277.1 million as of Aug. 26, 2023. Its total debt amounted to $9 billion as of Aug. 31, 2024, compared with $7.67 billion as of Aug. 26, 2023.
Canoo officially entered the UK market by launching its first European location at Bicester Motion, an iconic automotive hub. This marks a major step in Canoo's global expansion, enabling customers to experience and test drive its right-hand drive commercial electric vans. The UK is a key market for Canoo, as it is a global leader in electric vehicle (EV) adoption, supported by strong government incentives like the plug-in van grant (PIVG).
Canoo's UK Activation Center will support commercial operations and allow the company to work closely with customers to meet their fleet needs. CEO Tony Aquila highlighted the strategic importance of this move, emphasizing Canoo's commitment to delivering sustainable mobility solutions in high-demand markets. Bicester Motion provides an ideal platform for showcasing Canoo's EVs and connecting with other automotive innovators. Last to last week, Canoo’s Oklahoma City facility was designated as Oklahoma’s first automotive Foreign-Trade Zone (FTZ), reducing import costs and boosting margins. The FTZ status enables vendors to relocate, expanding benefits for Canoo and its partners.
ChargePoint highlighted key trends and technologies shaping the future of EV charging, emphasizing that innovations once considered futuristic are now becoming reality. The company is focusing on software advancements, such as real-time charger monitoring, AI-driven reliability, and power sharing, which will revolutionize charging hardware. Vehicle-to-everything capabilities and seamless “Plug and Charge” features are eliminating barriers to EV adoption by simplifying charging processes.
ChargePoint sees DC fast charging becoming the norm for public and commercial use, with affordability driving more widespread installations. For home charging, DC will enable vehicle-to-home integration, allowing cars to act as backup power sources. As the industry moves from addressing basic charging issues to enhancing reliability and affordability, ChargePoint is sharpening its focus on strengthening its position in developing next-generation products to propel the charging ecosystem’s growth.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Zacks Investment Research
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
Stay tuned for third-quarter U.S. vehicle delivery numbers to be unveiled by various auto giants.
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