Time Inc Ramps Up Asset Sale, CarMax Vehicle Sale Surge Lifts Earnings

Mukesh Buch
22 Sep, 2017
New York City

CarMax beats earnings and revenues estimate on higher vehicle unit sales. The Finish Line soared despite profit and revenues declined. Presidio security and cloud business soared but net swung to a loss. Time Inc plans to sell some assets including Time UK.

[R]11:50 AM New York – CarMax beats earnings and revenues estimate on higher vehicle unit sales. The Finish Line soared despite profit and revenues declined. Presidio security and cloud business soared but net swung to a loss. Time Inc plans to sell some assets including Time UK.[/R]

Tollbooth Index edged down 1.86 to 12,493.82.

Earnings Review

CarMax, Inc ((KMX)) jumped 5.6% or $3.83 to $72.67 after the used vehicles retailer reported net sales in the second-quarter ending in August soared 9.7% from a year ago to $4.4 billion.

Used unit sales in comparable stores in the quarter advanced 5.3% and total used unit sales surged 11.1% and total wholesale unit sales increased 0.4%.

Net income in the quarter jumped 11.7% to $181.4 million or 98 cents per diluted share from $162.4 million or 84 cents in the same quarter last year.

Total gross profit rose 10.8% to $604 million and used vehicle gross profit per unit was consistent at $2,178 from $2,160 in the same period a year ago.

The Finish Line, Inc ((FINL)) soared 10% or 93 cents to $10.13 after the specialty retailer stated net sales in the second-quarter ending on August 26 slumped 3.3% from a year ago to $469.4 million.

Finish Line comparable store sales in the quarter declined 4.5% and Finish Line Macy’s sales jumped 5.6%.

Net income in the quarter tumbled 87.3% to $2.8 million or 7 cents per diluted share from $22.1 million or 53 cents in the same quarter last year.

The retailer forecasted third-quarter Finish Line comparable sales to decrease between 3% and 5% and diluted loss per share in the range of 32 cents to 40 cents.

In the fourth-quarter, the Finish Line estimated comparable sales to fall between 3% and 5% and diluted earnings per share in the range of 50 cents to 58 cents.

Presidio Inc ((PSDO)) plunged 6.8% or 94 cents to $13.01 after the consulting and information technology provider said revenues in the fourth-quarter ending in June dropped 3.3% from a year ago to $753.9 million.

Net in the quarter swung to a loss of $7.4 million or 10 cents per diluted share from profit of $10.4 million or 11 cents in the same quarter last year.

Presidio said revenues in security segment surged 38.4% and revenues in cloud business soared 11.9% but revenue in digital infrastructure segment declined 1.7% to $496.9 million.

In fiscal 2018, the information technology provider forecasted strong execution in security and cloud business and total revenues to increase 5.5% and diluted earnings per share to grow in the high single digit range.

Time Inc ((TIME)) fell 7 cents to $12.48 after the media and publishing company said it exploring to sell its several assets, including Time Inc UK.

However, the media company reaffirmed full-year operating income in the range of $400 million to $414 million after last-month cost-cutting program of about $400 million.

The publishing company also estimated print and advertising revenues in the third quarter ending September to improve from 17% decline in the second-quarter after magazine circulation revenue dropped 12%.