Carmax Beats Estimates; Circle to Extend Gains, Home Depot Seeks to Buy GMS

On this episode of Stock Movers:

- CarMax (KMX) reported earnings per share for the first quarter that beat the average analyst estimate.

- Circle Internet Group (CRCL) shares are set to extend gains, rising 14% in premarket trading. The stablecoin issuer rallied almost 34% on Wednesday after the US Senate passed stablecoin legislation setting up regulatory rules for crypto currencies pegged to the dollar.

- Home Depot (HD) has made an offer for GMS Inc., potentially setting off a bidding war with QXO Inc. which this week made a $5 billion offer for the building-products distributor, the Wall Street Journal reported Thursday. The offer from Home Depot, the world’s largest home-improvement retailer, is for an undetermined sum, the Journal said, citing people with knowledge of the matter.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:17):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Pretty Goop. Does you
get ready to come back to work after the June
teenth holiday? We've had a couple of stocks report earnings
ahead of this morning's bell. Big pop for CarMax, Critty, good.

Speaker 1 (00:31):
Morning, Good morning, Nathan. Yeah, a couple earnings, a little
bit of a slow day on the macro front, outside
of course, of the geopolitical volatility we're seeing in the
Middle East, and because of the holiday yesterday, you are
seeing a bit of a catchup trade. But I'm gonna
start with earnings for a stock we don't lug every often,
which is CarMax. KMX is your ticker this morning. TRD
and just I have sixty nine dollars a share, hire
by about six and a half percent this morning. Now

(00:54):
it looks like they came their numbers came in a
little bit higher than estimates. Not a massive be here,
but enough to impress these markets. We're looking at first
quarter used vehicle sales about six point one billion dollars.
The estimate was about six billion on the dot. So
again those first quarter EPs beating as well. We're looking
at about a dollars thirty eight for the first quarter.
The consensus was a dollar seventeen. So the combination of

(01:16):
those two headlines certainly moving the market to the upside
this morning. But Nathan, as I said, it's a little
bit of a catshup trade in these markets as well
when it comes to the crypto market, and this is
again non an area I talk about very often in
this segment, but it's worth hitting because about two nights ago,
i want to say, thirty six hours ago, we heard
some news coming out of the Senate in fact, when

(01:36):
it comes to the stable coin bill and getting a
little bit of approval there in a bit of a
green light that is now starting to show up in
some of those crypto exposed names. Let me walk you
through a couple of them. Circle is going to be
the key one that you want to watch. See ourcl
is your ticker. They're the ones that actually talked about
issuing the stable coins in the first place. So massive
move here in the pre market, even though the news

(01:58):
is coming from about Wednesday night. CrCL hire by nine
percent this morning, trading at two hundred and seventeen dollars
a share. But you're seeing that in all of the
cryptocurrency exposed names, for example, So Coinbase is another COI
n catching up big this morning, hired by one point
two percent and officially part of the S and P
five hundred as well. So really keep an eye on
that stock now that it is officially a large cap

(02:21):
company pitpoint as well. From a broad standpoint, Hi by
about one point six percent to all of them moving
in line with that macro story. So M and A
on the docket as well, Nathan. When it comes to
home Depot of all plays, yes, yeah, they've got some
interest here. When it comes to QXO, which, folks, we

(02:42):
don't really talk about this one much, but it is
a company that operates in logistics. It's one of the
crown jewels of Brad Jacobs. It looks like GMS shares
are now jumping on the report of Home Depot's challenge
to the QXO bid. So there's plenty going on. Their
GMS shares as high as much high by as much
as twenty two percent in the pre market. Home depot

(03:03):
shares seeing a little bit of volatility as well. Remember,
home depots are reported earnings recently, they're trying to navigate
where their new consumer bases. Their shares are down this morning,
down by about six tenths of one percent, but that's
again very normal when you're talking about some M and
A action there. So home depot shares moving the market
a little bit lower. The next one, the last one
I'm gonna mention is Mandalis and again it's slim pickings.

(03:26):
I'm talking about some non traditional stocks usually in this segment,
in the segment, but Mandali's is actually higher by about
one percent MDLC. They are the makers of oreos. For
those who don't who don't know Wells Fargo, Oh I
know them. We all know we're very similar. Mondoley's getting
an upgrade from Wells Fargo thinking that the Bowld case
for them is more probable and more tangible. So a

(03:48):
sample of approval look for at Wells Fargo.

Speaker 2 (03:52):
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