- CarMax reported 4th quarter earnings per share (EPS) of 58 cents, missing the estimate of 65 cents but up from 32 cents the previous year.
- Used vehicle sales reached $4.84 billion, a 7.5% year-over-year increase, slightly surpassing the estimate of $4.81 billion.
- Wholesale vehicle sales were $1.01 billion, marking a 3.5% year-over-year growth but falling short of the $1.03 billion estimate.
- Extended protection plan revenues grew by 8.1% year-over-year to $105.9 million, missing the $109.4 million estimate.
- Used vehicle gross profit increased by 9.5% year-over-year to $424.1 million, just below the $424.8 million estimate.
- Wholesale vehicle gross profit saw a decrease of 3.8% year-over-year, totaling $124.5 million and falling short of the $135.1 million estimate.
- For fiscal year 2026, CarMax expects low-single-digit gross profit growth to leverage Selling, General and Administrative (SG&A) expenses.
- CarMax anticipates capital expenditures of approximately $575 million in fiscal 2026.
- CEO Bill Nash highlighted robust EPS growth, driven by increases in unit sales and strong growth in total gross profit, alongside effective management of SG&A costs.
- CarMax achieved notable improvements in its consumer offering and operational efficiencies during fiscal year 2025.
- Current analyst recommendations include 12 buys, 5 holds, and 3 sells for CarMax stock.
Carmax Inc on Smartkarma
Smartkarma, an independent investment research network, hosts analyst coverage on Carmax Inc from top independent analysts like Baptista Research. According to Baptista Research, Carmax Inc, a key player in the used car retail market, showcased strong performance in its third quarter fiscal year 2025 results. The company saw growth across its retail, wholesale, and CarMax Auto Finance segments, leading to a significant increase in earnings per share. This positive outcome was attributed to a mix of internal strategies and favorable external conditions, highlighting CarMax’s resilient business model.
Further insights from Baptista Research on Carmax Inc‘s second quarter earnings for fiscal year 2025 revealed total sales of $7 billion. Despite a slight 1% year-over-year decline, driven by lower retail and wholesale prices, Carmax managed to bolster its sales through increased retail volume. Despite challenges in the auto loan market impacting the industry, CarMax remained steadfast in navigating these obstacles, indicating its ability to adapt and thrive in the market.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
CarMax Inc, a renowned retailer of used cars and light trucks across the United States, presents a mixed bag of Smartkarma Smart Scores. With a moderate Value score of 3 and Growth score of 3, the company seems to be fairly valued with potential for future expansion. However, its Dividend score of 1 indicates a lack of focus on distributing dividends to shareholders. In terms of Resilience, CarMax Inc scores a 2, suggesting some vulnerability to economic fluctuations. On the upside, the company shines in Momentum with a solid score of 4, indicating strong market performance and potential for future growth.
In summary, CarMax Inc shows promise for long-term growth potential, supported by its solid Momentum score. However, investors may need to consider the company’s lower Resilience score and negligible Dividend score when evaluating it as a long-term investment option. Overall, with a balanced outlook across various factors, CarMax Inc seems poised to continue its presence as a leading player in the used car sales industry in the foreseeable future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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