Latest news with #SG&A
Yahoo
4 days ago
- Business
- Yahoo
Bel Fuse Inc (BELFA) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
Revenue: $168.3 million, an increase of 26.3% from Q2 2024. Power Solutions and Protection Sales: $86.8 million, up 48.2% year-over-year. Aerospace and Defense Contribution: $32.6 million to the power segment. Consumer Sales Decline: Decreased by $1.7 million due to trade restrictions. E-Mobility Sales Decline: $2.3 million year-over-year decline. Rail End Market Sales Decline: $3.3 million reduction. AI Sales: Increased by $2.3 million, totaling $2.6 million. Circuit Protection Sales Increase: $1.8 million increase. Gross Margin for Power Segment: 41.9%, a decline of 380 basis points from Q2 2024. Connectivity Solutions Sales: $59.2 million, up 2.4% year-over-year. Commercial Air Applications Sales: $20.5 million, a 33% increase. Defense Applications Sales: $13.4 million, a 12% increase. Gross Margin for Connectivity Solutions: 39.2%, an improvement of 30 basis points. Magnetic Solutions Sales: $22.3 million, up 32.5% year-over-year. Gross Margin for Magnetics Group: 28.7%, an improvement of 230 basis points. R&D Expenses: $8.1 million, increased due to acquisition and compensation adjustments. SG&A Expenses: $30.9 million, representing 18.4% of sales, increased by $6.8 million. Cash and Securities: $59.3 million at the end of the quarter. Long-term Debt Repayment: $30 million, reducing annual interest expense by $1.7 million. Capital Expenditures: $3.9 million. Dividend Payments: $800,000. Operating Cash Flow: $20.7 million generated during the quarter. Warning! GuruFocus has detected 11 Warning Signs with BELFA. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Bel Fuse Inc (NASDAQ:BELFA) surpassed revenue expectations for the second quarter of 2025, with sales reaching $168.3 million, a 26.3% increase from the same period in 2024. The company experienced strong performance in its aerospace and defense markets, contributing significantly to the growth in the power segment. Gross margins were at the higher end of the projected range, with the power segment achieving a margin of 41.9%. The magnetic solutions group saw a 32.5% increase in sales compared to the second quarter of 2024, driven by a rebound in demand from networking customers. Bel Fuse Inc (NASDAQ:BELFA) successfully reduced long-term debt by $30 million, resulting in a $1.7 million reduction in annual interest expense. Negative Points Sales in the consumer, rail, and e-mobility markets within the power segment declined year-over-year, with e-mobility sales experiencing a $2.3 million decrease. The gross margin for the power segment declined by 380 basis points from Q2 2024, partly due to non-recurring items reported at 100% gross margin in the previous year. Selling, general, and administrative expenses increased by $6.8 million in the second quarter of 2025, driven by Intercon's expenses and higher medical claims. The company faces ongoing uncertainties related to tariffs, which could impact future sales and margins. Depreciation and amortization expenses nearly doubled year-over-year due to the acquisition of Intercon, impacting overall profitability. Q & A Highlights Q: Can you expand on the trends underpinning your guidance, particularly regarding the rebound in networking and distribution segments? A: Lynn Hutkin, CFO, explained that orders began picking up in Q1 and continued into Q2, driven by a rebound in networking, impacting power and magnetics groups, and distribution channels. This trend is expected to continue into the second half of the year. Q: Are there any strategic growth initiatives or margin enhancement plans for the rest of the year? A: Farouq Tuweiq, CEO, mentioned ongoing strategic initiatives across the organization. The focus is on operational excellence and efficiency. The sale of the Glen Rock facility was part of a strategy to improve margins and operational efficiency. No other facility sales are planned at this time. Q: Can you discuss the improvement in order trends and intra-quarter turns? A: Farouq Tuweiq noted that intra-quarter turns have improved, indicating healthier market conditions. This improvement is particularly evident in shorter lead-time businesses like fuses, suggesting a more functional market environment. Q: What is the status of the paused revenue from China, and how does it impact future quarters? A: Lynn Hutkin stated that about two-thirds of the paused revenue from China was shipped in Q2, with the remainder expected in Q3. The company anticipates sequential growth in the second half of the year, although Q4 growth over Q3 is not yet confirmed. Q: How are you managing market recovery and inventory rebuild expectations amid tariff uncertainties? A: Farouq Tuweiq explained that the industry is emerging from a prolonged trough, with customers being cautious due to geopolitical concerns. The focus is on normalizing inventory levels and ensuring the system functions appropriately, rather than building excessive inventory. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
7 days ago
- Business
- Yahoo
Akzo Nobel NV (AKZOF) Q2 2025 Earnings Call Highlights: Strategic Moves and Margin Expansion ...
Gross Margin: Increased by 40 basis points year-on-year. EBITDA Margin: Expanded by 60 basis points to 15%. Free Cash Flow: Generated EUR162 million in the quarter. Organic Sales: Flat for the quarter. Volume Change: Declined by 1% year-on-year. Price/Mix Impact: Pricing up 2%, offset by a negative 1% mix impact. Adjusted EBITDA: EUR393 million, or EUR417 million adjusted for ForEx. ForEx Impact: 5% negative impact on revenue. Net OpEx Savings: EUR35 million year-on-year. Adjusted Leverage Ratio: Stands at 2.9 times. Return on Investment: 13.2%, lower year-on-year. Operating Working Capital: Improved to 17% of revenue. Sale of Indian Businesses: Sold for EUR1.4 billion at 25 times 2025 EBITDA. Site Closures: Announced five additional site closures in the first half of 2025. Warning! GuruFocus has detected 10 Warning Signs with AKZOF. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Akzo Nobel NV (AKZOF) achieved a 60 basis point increase in EBITDA margin to 15%, reflecting pricing discipline and structural benefits from SG&A and industrial programs. The company generated EUR162 million of free cash flow in the quarter despite EUR49 million of cash-out related to restructuring. Akzo Nobel NV (AKZOF) successfully sold most of its Indian businesses at 25 times 2025 EBITDA for EUR1.4 billion, while maintaining a royalty stream for Coatings. The SG&A program announced last year is fully implemented, delivering over EUR150 million of recurring savings, with potential for further efficiency improvements. The company is on track to reduce leverage to around 2.3 times by year-end, reflecting current ForEx rates and expected deleveraging proceeds from India. Negative Points Volumes declined by 1% year-on-year, primarily due to continued softness in the North American Coatings markets. Foreign exchange rates posed a significant headwind, with a 5% negative impact on revenue, resulting in a total revenue decline of 6%. The Turkish deco market has slowed down significantly, with volumes down double digits, impacting the company's performance in the region. North American refinish demand remains soft, with consumers delaying car repairs due to increased insurance premiums and reduced disposable income. The automotive market remains complicated, with ongoing challenges in the Powder Coatings segment due to tariff uncertainties. Q & A Highlights Q: Can you unpack the next steps in your strategic review and M&A, especially in light of recent reports about interest in BASF Coatings? A: We are focused on disposals rather than acquisitions. The sale of Akzo Nobel India was a first step in our strategic review, and we are assessing other businesses where we are not market leaders. Regarding BASF, we are not committed to their main process as they seek a cash transaction, which we are not pursuing. Q: How is the North American market developing, and what are your assumptions for the second half of the year? A: The North American market remains weak due to customer uncertainty, partly driven by tariff discussions. We do not expect a change in dynamics for Q3, with Protective being the only segment showing strong growth. Q: Can you describe the main moving parts on mix that impacted the quarter and your expectations for the rest of the year? A: The mix was mainly driven by a strong rebound in China Deco and weakness in North America. We expect a similar negative mix impact in Q3 due to these factors. Q: How is your raw materials basket shaping up for the second half of the year, and how are competitors behaving in terms of pricing? A: Our raw material basket is improving and is expected to be flat for the year. Pricing has been positive, with a 2% increase in Q1 and Q2, despite competitive pressures, particularly in Coatings. Q: Can you elaborate on the impact of service levels (OTIF) on financial performance? A: OTIF is an enabler of industrial health, translating into lower costs over time. It ensures efficient operations and customer service, which supports volume resilience and cost management. Q: What gives you confidence in your second-half guidance, given seasonality and FX headwinds? A: We expect margin expansion due to a softening raw material environment and benefits from operational actions. SG&A savings and industrial excellence actions will also contribute positively. Q: Can you explain the royalty streams following the divestment of the Indian business? A: We will collect a 4.5% licensing fee on Coatings sales in India, as we continue to provide technology and innovation to JSW Group, ensuring Akzo products remain available globally. Q: How is the Western Europe Deco business performing, and what are the drivers? A: Western Europe Deco has returned to growth, driven by improved weather and a pickup in the professional segment, particularly in the UK and Benelux, where we have strong market positions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Wire
20-06-2025
- Automotive
- Business Wire
CarMax Reports First Quarter Fiscal Year 2026 Results
RICHMOND, Va.--(BUSINESS WIRE)--CarMax, Inc. (NYSE:KMX) today reported results for the first quarter ended May 31, 2025. First Quarter Highlights: (1) Net earnings per diluted share increased 42.3% to $1.38 from $0.97 a year ago. Retail used unit sales increased 9.0% and comparable store used unit sales increased 8.1%; wholesale units increased 1.2%. Total gross profit increased 12.8% to $893.6 million, driven by higher unit volumes and strong unit margin performance. Record high gross profit per retail used unit of $2,407, up $60 per unit Historically strong gross profit per wholesale unit of $1,047, down $17 per unit Extended Protection Plans (EPP) margin per retail unit of $572, an increase of $9 per unit Service margin of $143 per retail unit, an improvement of $128 per retail unit Bought 336,000 vehicles from consumers and dealers, an increase of 7.2%. 288,000 vehicles were purchased from consumers, up 3.3% 48,000 vehicles were purchased through dealers, up 38.4% SG&A increased 3.3% to $659.6 million. Ongoing cost management efforts supported strong leverage of 680 basis points in SG&A as a percent of gross profit. Expanded CarMax Auto Finance (CAF) non-prime funding program, which we expect to provide significant flexibility in supporting CAF's full spectrum penetration growth plans while mitigating risk. CAF income decreased 3.6% to $141.7 million as an increase in the provision for loan losses outweighed growth in the net interest margin percentage. Accelerated the pace of share buybacks with $199.8 million in shares of common stock repurchased in the first quarter of fiscal year 2026. CEO Commentary: 'We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth. These results highlight the strength of our earnings growth model, which is underpinned by our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution,' said Bill Nash, president and chief executive officer. 'Our associates, stores, technology and digital capabilities, all seamlessly tied together, enable us to provide the most customer-centric car buying and selling experience. This is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come.' First Quarter Business Performance Review: Sales. Combined retail and wholesale used vehicle unit sales were 379,727, an increase of 5.8% from the prior year's first quarter. Total retail used vehicle unit sales increased 9.0% to 230,210 compared to the prior year's first quarter. Comparable store used unit sales increased 8.1% from the prior year's first quarter. Total retail used vehicle revenues increased 7.5% compared with the prior year's first quarter, driven by the increase in retail used units sold. Total wholesale vehicle unit sales increased 1.2% to 149,517 versus the prior year's first quarter. Total wholesale revenues declined 0.3% compared with the prior year's first quarter due to a decrease in the average wholesale selling price of approximately $150 per unit or 1.7%, partially offset by the increase in wholesale units sold. We bought 336,000 vehicles from consumers and dealers, up 7.2% compared to last year's first quarter. Of these vehicles, 288,000 were bought from consumers and 48,000 were bought through dealers, an increase of 3.3% and 38.4%, respectively, from last year's first quarter. Other sales and revenues increased by 6.1%, or $10.9 million, compared with the first quarter of fiscal 2025, primarily reflecting an increase in EPP revenues driven by an increase in retail unit sales. Our digital capabilities supported 80% of retail unit sales. Omni sales (2) were 66% and online retail sales (3) accounted for 14% of retail unit sales. Gross Profit. Total gross profit was $893.6 million, up 12.8% versus last year's first quarter. Retail used vehicle gross profit increased 11.8% and retail gross profit per used unit increased $60 from the prior year's first quarter to $2,407, a record high. Wholesale vehicle gross profit decreased 0.4% versus the prior year's first quarter. Gross profit per unit was historically strong at $1,047, though a decrease of $17 from the prior year's first quarter. Other gross profit increased 31.3% primarily reflecting growth in service gross profit driven by cost coverage measures, positive retail unit growth, and increased efficiencies as well as growth in EPP revenues supported by stronger retail unit sales. SG&A. Compared with the first quarter of fiscal 2025, SG&A expenses increased 3.3% or $21.1 million to $659.6 million, primarily driven by an increase in compensation and benefits driven by costs related to unit volume growth. SG&A as a percent of gross profit improved by 680 basis points to 73.8% in the first quarter compared to 80.6% in the prior year's first quarter, driven by the growth in gross profit and ongoing cost management efforts in the stores and customer experience centers. CarMax Auto Finance Expands Non-Prime Funding Program. During the first quarter, CAF earmarked $637.9 million of non-prime loans from the CAF portfolio that are intended to be fully sold off our balance sheet. As of May 31, 2025, these loans have been reclassified as held for sale on our consolidated balance sheet. Auto loans in CAF's portfolio that have not been designated as held for sale are designated as held for investment. We expect that the expansion of our non-prime funding program will provide significant flexibility in supporting CAF's full spectrum penetration growth plans while mitigating risk. CarMax Auto Finance. (4) CAF income decreased 3.6% to $141.7 million as an increase in the provision for loan losses outweighed growth in CAF's net interest margin percentage. This quarter's provision for loan losses was $101.7 million compared to $81.2 million in the prior year's first quarter, driven by loss performance among 2022 and 2023 vintages and economic uncertainty. There was a reduction in this quarter's provision due to the release of $26 million for the allowance previously recorded for loans that are now classified as held for sale. As of May 31, 2025, the allowance for loan losses of $474.2 million was 2.76% of auto loans held for investment, up from 2.61% as of February 28, 2025. CAF's total interest margin percentage, which represents the spread between interest and fees charged to consumers and our funding costs, was 6.5% of average auto loans outstanding, which includes held for investment and held for sale, up 30 basis points from both the prior year's first quarter and from the fourth quarter of fiscal 2025. After the effect of 3-day payoffs, CAF financed 41.8% of units sold in the current quarter, down from 43.3% in the prior year's first quarter. CAF's reduction in penetration was primarily driven by an influx of self-funded, higher credit purchasers seen during the initial announcement of tariffs, and to a lesser degree, a higher Tier 3 penetration, both of which more than offset our expansion since the fourth quarter of last year. CAF's weighted average contract rate was 11.4% in the quarter, consistent with the first quarter last year. Share Repurchase Activity. During the first quarter of fiscal year 2026, we repurchased 3.0 million shares of common stock for $199.8 million. As of May 31, 2025, we had $1.74 billion remaining available for repurchase under the outstanding authorization. Location Openings. During the first quarter of fiscal 2026, we opened two new stand-alone reconditioning/auction centers. The centers are located in El Mirage, Arizona, supporting the Phoenix metro market, and Midlothian, Texas, supporting the Dallas metro market. Supplemental Financial Information Amounts and percentage calculations may not total due to rounding. Sales Components Three Months Ended May 31 (In millions) 2025 2024 Change Used vehicle sales $ 6,103.4 $ 5,677.5 7.5 % Wholesale vehicle sales 1,252.7 1,256.4 (0.3 )% Other sales and revenues: Extended protection plan revenues 131.7 118.8 10.8 % Third-party finance fees, net (0.7 ) (1.7 ) 58.3 % Advertising & subscription revenues (1) 36.5 34.7 5.3 % Other 22.9 27.7 (17.3 )% Total other sales and revenues 190.4 179.5 6.1 % Total net sales and operating revenues $ 7,546.5 $ 7,113.4 6.1 % Expand (1) Excludes intercompany revenues that have been eliminated in consolidation. Expand Unit Sales Three Months Ended May 31 2025 2024 Change Used vehicles 230,210 211,132 9.0 % Wholesale vehicles 149,517 147,685 1.2 % Expand Average Selling Prices Three Months Ended May 31 2025 2024 Change Used vehicles $ 26,120 $ 26,526 (1.5 )% Wholesale vehicles $ 7,959 $ 8,094 (1.7 )% Expand Vehicle Sales Changes Three Months Ended May 31 2025 2024 Used vehicle units 9.0 % (3.1 )% Used vehicle revenues 7.5 % (5.4 )% Wholesale vehicle units 1.2 % (8.3 )% Wholesale vehicle revenues (0.3 )% (17.0 )% Expand Comparable Store Used Vehicle Sales Changes (1) Three Months Ended May 31 2025 2024 Used vehicle units 8.1 % (3.8 )% Used vehicle revenues 6.6 % (6.1 )% Expand (1) Stores are added to the comparable store base beginning in their fourteenth full month of operation. Comparable store calculations include results for a set of stores that were included in our comparable store base in both the current and corresponding prior year periods. Expand Used Vehicle Financing Penetration by Channel (Before the Impact of 3-day Payoffs) (1) Three Months Ended May 31 2025 2024 CAF (2) 44.4 % 45.3 % Tier 2 (3) 17.7 % 18.7 % Tier 3 (4) 8.0 % 7.5 % Other (5) 29.9 % 28.5 % Total 100.0 % 100.0 % Expand (1) Calculated as used vehicle units financed for respective channel as a percentage of total used units sold. (2) Includes CAF's Tier 2 and Tier 3 loan originations, which represent approximately 2% of total used units sold. (3) Third-party finance providers who generally pay us a fee or to whom no fee is paid. (4) Third-party finance providers to whom we pay a fee. (5) Expand Selected Operating Ratios Three Months Ended May 31 (In millions) 2025 % (1) 2024 % (1) Net sales and operating revenues $ 7,546.5 100.0 $ 7,113.4 100.0 Gross profit $ 893.6 11.8 $ 791.9 11.1 CarMax Auto Finance income $ 141.7 1.9 $ 147.0 2.1 Selling, general, and administrative expenses $ 659.6 8.7 $ 638.6 9.0 Interest expense $ 27.1 0.4 $ 31.4 0.4 Earnings before income taxes $ 283.1 3.8 $ 206.6 2.9 Net earnings $ 210.4 2.8 $ 152.4 2.1 Expand (1) Calculated as a percentage of net sales and operating revenues. Expand Gross Profit (1) Three Months Ended May 31 (In millions) 2025 2024 Change Used vehicle gross profit $ 554.2 $ 495.5 11.8 % Wholesale vehicle gross profit 156.6 157.1 (0.4 )% Other gross profit 182.8 139.3 31.3 % Total $ 893.6 $ 791.9 12.8 % Expand (1) Amounts are net of intercompany eliminations. Expand Gross Profit per Unit (1) Three Months Ended May 31 2025 2024 $ per unit (2) % (3) $ per unit (2) % (3) Used vehicle gross profit per unit $ 2,407 9.1 $ 2,347 8.7 Wholesale vehicle gross profit per unit $ 1,047 12.5 $ 1,064 12.5 Other gross profit per unit $ 794 96.1 $ 660 77.6 Expand (1) Amounts are net of intercompany eliminations. (2) Calculated as category gross profit divided by its respective units sold, except the other category, which is divided by total used units sold. (3) Calculated as a percentage of its respective sales or revenue. Expand (1) Amounts are net of intercompany eliminations. (2) Excludes compensation and benefits related to reconditioning and vehicle repair service, which are included in cost of sales. (3) Includes IT expenses, non-CAF bad debt, insurance, preopening and relocation costs, travel, charitable contributions and other administrative expenses. Expand Components of CAF Income and Other CAF Information Three Months Ended May 31 (In millions) 2025 2024 Interest margin: Interest and fee income $ 485.4 $ 452.5 Interest expense (197.5 ) (182.3 ) Total interest margin 287.9 270.2 Provision for loan losses (101.7 ) (81.2 ) Total interest margin after provision for loan losses 186.2 189.0 Total direct expenses (44.5 ) (42.0 ) CarMax Auto Finance income $ 141.7 $ 147.0 Average auto loans outstanding (1) $ 17,719.9 $ 17,551.2 Total interest margin as a percent of average auto loans outstanding 6.5 % 6.2 % Net auto loans originated (1) $ 2,318.5 $ 2,265.7 Net penetration rate (1) 41.8 % 43.3 % Weighted average contract rate (1) 11.4 % 11.4 % Ending allowance for loan losses $ 474.2 $ 493.1 Expand (1) Includes auto loans held for investment and auto loans held for sale. Expand Earnings Highlights Three Months Ended May 31 (In millions except per share data) 2025 2024 Change Net earnings $ 210.4 $ 152.4 38.0 % Diluted weighted average shares outstanding 152.6 157.7 (3.2 )% Net earnings per diluted share $ 1.38 $ 0.97 42.3 % Expand Conference Call Information We will host a conference call for investors at 9:00 a.m. ET today, June 20, 2025. Domestic investors may access the call at 1-800-225-9448 (international callers dial 1-203-518-9708). The conference I.D. for both domestic and international callers is 3171396. A live webcast of the call will be available on our investor information home page at A replay of the webcast will be available on the company's website at through September 24, 2025, or via telephone (for approximately one week) by dialing 1-800-839-1247 (or 1-402-220-0470 for international access) and entering the conference ID 3171396. Second Quarter Fiscal 2026 Earnings Release Date We currently plan to release results for the second quarter ending August 31, 2025, on Thursday, September 25, 2025, before the opening of trading on the New York Stock Exchange. We plan to host a conference call for investors at 9:00 a.m. ET on that date. Information on this conference call will be available on our investor information home page at in early September 2025. About CarMax CarMax, the nation's largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year that ended February 28, 2025, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated more than $8 billion in auto loans during fiscal 2025, adding to its nearly $18 billion portfolio. CarMax has 250 store locations, over 30,000 associates, and is proud to have been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2025 Responsibility Report. For more information, visit Forward-Looking Statements We caution readers that the statements contained in this release that are not statements of historical fact, including statements about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, inventory, market share, financial and operational targets and goals, revenue, margins, expenses, liquidity, loan originations, capital expenditures, share repurchase plans, debt obligations or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of words such as 'anticipate,' 'believe,' 'could,' 'enable,' 'estimate,' 'expect,' 'intend,' 'may,' 'outlook,' 'plan,' 'positioned,' 'predict,' 'should,' 'target,' 'will' and other similar expressions, whether in the negative or affirmative. Such forward-looking statements are based upon management's current knowledge, expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following: Changes in the competitive landscape and/or our failure to successfully adjust to such changes. Changes in general or regional U.S. economic conditions, including economic downturns, inflationary pressures, fluctuating interest rates, tariffs or the effect of trade policies, and the potential impact of international events. Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market. Events that damage our reputation or harm the perception of the quality of our brand. Significant changes in prices of new and used vehicles. A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory. Our inability to realize the benefits associated with our omni-channel platform or initiatives designed to leverage evolving technologies, including AI. Factors related to geographic and sales growth, including the inability to effectively manage our growth. Our inability to recruit, develop and retain associates and maintain positive associate relations. The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs. Changes in economic conditions or other factors that result in greater credit losses for CAF's portfolio of auto loans than anticipated. The failure or inability to realize the benefits associated with our strategic investments. Changes in consumer credit availability provided by our third-party finance providers. Changes in the availability of extended protection plan products from third-party providers. The performance of the third-party vendors we rely on for key components of our business. Adverse conditions affecting one or more automotive manufacturers. The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles. The failure or inability to adequately protect our intellectual property. The occurrence of severe weather events. The failure or inability to meet our environmental goals or satisfy related disclosure requirements. Factors related to the geographic concentration of our stores. Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information. The failure of or inability to sufficiently enhance key information systems. Factors related to the regulatory and legislative environment in which we operate. The effect of evolving regulations, disclosure requirements, standards and expectations relating to environmental, social and governance matters. The effect of various litigation matters. The volatility in the market price for our common stock. For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission. Our filings are publicly available on our investor information home page at Requests for information may also be made to the Investor Relations Department by email to investor_relations@ or by calling (804) 747-0422 x7865. We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. (1) Percents are calculated as a percentage of net sales and operating revenues and may not total due to rounding. Expand CARMAX, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) As of May 31 February 28 May 31 (In thousands except share data) 2025 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 262,819 $ 246,960 $ 218,931 Restricted cash from collections on auto loans held for investment 584,277 559,118 536,407 Accounts receivable, net 200,305 188,733 212,370 Auto loans held for sale 637,947 — — Inventory 3,624,353 3,934,622 3,772,885 Other current assets 142,890 148,203 229,714 TOTAL CURRENT ASSETS 5,452,591 5,077,636 4,970,307 Auto loans held for investment, net 16,802,744 17,242,789 17,268,321 Property and equipment, net 3,909,977 3,841,833 3,734,736 Deferred income taxes 141,183 140,332 100,104 Operating lease assets 482,613 493,355 509,043 Goodwill 141,258 141,258 141,258 Other assets 456,039 467,003 518,325 TOTAL ASSETS $ 27,386,405 $ 27,404,206 $ 27,242,094 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 980,499 $ 977,845 $ 911,348 Accrued expenses and other current liabilities 409,003 529,926 456,277 Accrued income taxes 79,412 87,526 24,792 Current portion of operating lease liabilities 58,332 59,335 57,534 Current portion of long-term debt 217,319 16,821 21,550 Current portion of non-recourse notes payable 532,787 526,518 514,394 TOTAL CURRENT LIABILITIES 2,277,352 2,197,971 1,985,895 Long-term debt, excluding current portion 1,366,176 1,570,296 1,591,366 Non-recourse notes payable, excluding current portion 16,639,622 16,567,044 16,626,011 Operating lease liabilities, excluding current portion 470,912 481,963 484,632 Other liabilities 345,434 343,944 387,320 TOTAL LIABILITIES 21,099,496 21,161,218 21,075,224 Commitments and contingent liabilities SHAREHOLDERS' EQUITY: Common stock, $0.50 par value; 350,000,000 shares authorized; 150,582,152 and 153,319,678 shares issued and outstanding as of May 31, 2025 and February 28, 2025, respectively 75,291 76,660 78,176 Capital in excess of par value 1,899,003 1,891,012 1,834,218 Accumulated other comprehensive (loss) income (8,246 ) 3,080 61,678 Retained earnings 4,320,861 4,272,236 4,192,798 TOTAL SHAREHOLDERS' EQUITY 6,286,909 6,242,988 6,166,870 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 27,386,405 $ 27,404,206 $ 27,242,094 Expand
Yahoo
17-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Fastenal's Q1 Earnings Call
Fastenal's first quarter results were well received by the market, as the company delivered both revenue and non-GAAP profit in line with Wall Street expectations. Management attributed the positive outcome to strong internal execution, including expanded customer relationships and higher adoption of Fastenal Managed Inventory (FMI) solutions. CEO Dan Florness emphasized that, despite ongoing weakness in underlying industrial demand, Fastenal's growth was 'mostly self-help,' reflecting successful sales initiatives and increased customer engagement. The quarter also featured a meaningful increase in device deployments, with FMI units growing 12.5%. Is now the time to buy FAST? Find out in our full research report (it's free). Revenue: $1.96 billion vs analyst estimates of $1.96 billion (3.4% year-on-year growth, in line) Adjusted EBITDA: $437.4 million vs analyst estimates of $438.4 million (22.3% margin, in line) Operating Margin: 20.1%, in line with the same quarter last year Sales Volumes rose 12.4% year on year (10.5% in the same quarter last year) Market Capitalization: $48.46 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. David Manthey (Baird) asked if Fastenal's contracts can absorb abrupt tariff increases. CEO Dan Florness confirmed pricing flexibility, but stressed the importance of sourcing alternatives and transparency with customers. Stephen Volkmann (Jefferies) questioned how Fastenal manages the timing of substantial tariff-driven price increases. Florness and CFO Holden Lewis explained that direct sourcing and rapid inventory turnover help align cost and price changes for customers. Ryan Cook (Wolfe Research) inquired about trends in SG&A expenses and the outlook for cost leverage. Lewis said leveraging SG&A is possible if mid-single-digit growth continues, but variable compensation may rise with improved operating results. Tommy Moll (Stephens) sought details on recent pricing actions and the implementation cadence. Lewis and Florness noted staggered price increases, especially for fasteners affected by steel tariffs, with customer discussions driving timing. Chris Snyder (Morgan Stanley) asked about opportunities to shift fastener production from Asia to North America or Mexico. Florness explained that a lack of regional manufacturing scale and tariff policy uncertainty limit near-term reshoring feasibility. In upcoming quarters, our team will be closely tracking (1) the effectiveness and customer acceptance of additional tariff-driven pricing actions, (2) progress toward Fastenal's digital sales penetration targets and growth in FMI deployments, and (3) the company's success in managing inventory and supply chain adjustments amid ongoing trade policy uncertainty. Execution in e-commerce and large account expansion will also be important signals. Fastenal currently trades at $42.04, up from $37.87 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
J.Jill, Inc. (JILL) Is 'Irrelevant,' Says Jim Cramer
Inc. (NYSE:JILL) is one of the . Inc. (NYSE:JILL) is an American women's apparel firm headquartered in Massachusetts. The firm's shares are down by a whopping 50% year-to-date making it one of the worst-performing retail stocks this year. Over the year, Inc. (NYSE:JILL)'s stock has bled 58.8%. The recent bit of turmoil surrounding the stock came in June when the shares sank by 16%. The dip came after the firm released its earnings report for the first quarter. The results saw the firm post 88 cents in adjusted earnings which was higher than 86 cents in analyst estimates. Inc. (NYSE:JILL)'s revenue sat at $153.6 million which fell short of $156.8 million of analyst estimates. However, the major reason the stock dipped was the firm's announcement that it would withdraw its full-year outlook. Cramer's comments about Inc. (NYSE:JILL) were short: 'Yeah they're [JILL] irrelevant.' A busy street in a metropolitan scene, featuring the company omnichannel retail stores. During its earnings call, Inc. (NYSE:JILL)'s management asserted that while it was pulling its outlook, teams were nevertheless working to drive sales: 'Now for more on our outlook. As I mentioned, given the increased uncertainty with respect to the macroeconomic environment, along with our recent CEO transition, we are withdrawing our prior full year guidance and temporarily suspending our practice of providing forward guidance on most metrics. That said, our teams are diligently working to assess opportunities for improvement within the assortment, and we have taken swift actions to reduce inventory investments in floor sets beginning in the third quarter to better align with current demand trends. Quarter-to-date through May, total company sales are down mid-single digits compared to the prior year period. While comparisons get easier as we move forward, should sales continue to decline at this level, we would expect to see significant SG&A deleverage as well as further pressure on gross margin, driven by actions taken to ensure the movement of inventory in season.' While we acknowledge the potential of JILL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
