- CarMax reported a lower-than-expected earnings per share (EPS) for the second quarter at $0.64, compared to $0.85 in the same period last year and missing the estimate of $1.03.
- Net sales and operating revenue were $6.59 billion, a 6% decrease year-over-year, and below the estimated $7.01 billion.
- Used vehicle sales totaled $5.27 billion, representing a 7.2% decline compared to last year and short of the $5.69 billion estimate.
- Wholesale vehicle sales were slightly above estimates at $1.15 billion, down only 0.4% from the previous year, with an estimate of $1.13 billion.
- Revenue from other sales was $174.4 million, missing the estimate of $188.4 million.
- Extended protection plan revenues fell by 5.2% year-over-year to $115.1 million, below the expected $126.2 million.
- Used vehicle gross profit decreased by 7.6% to $442.6 million, falling short of the $493.6 million estimate.
- Wholesale vehicle gross profit was $137.3 million, nearly in line with the $135.4 million estimate and barely changed from last year.
- Used unit sales in comparable stores dropped by 6.3% year-over-year.
- The company commented that they expect a gain on sale to be approximately $25 million to $30 million in third-quarter income.
- Analyst recommendations for CarMax include 13 buys, 6 holds, and 2 sells.
Carmax Inc on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring CarMax Inc. Baptista Research published a bullish report titled “CarMax Inc.: The 6 Key Drivers Shaping Its Performance in 2025 & Beyond!- Major Drivers.” In this report, they highlighted CarMax’s strong performance in the fiscal 2026 first quarter, emphasizing positive trends and areas for growth. CarMax achieved its fourth consecutive quarter of positive retail unit comp growth, saw double-digit earnings per share (EPS) expansion with a 42% increase year-over-year, and attributed this growth to a 9% increase in total retail unit sales. The report also praised CarMax’s solid retail gross profits per used unit and the success of its omnichannel shopping model blending in-store and online experiences.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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
Based on the Smartkarma Smart Scores for Carmax Inc, the company shows a positive outlook in terms of value with a strong score of 4. This indicates that Carmax Inc is considered to be undervalued compared to its competitors. However, the company receives a low score of 1 in terms of dividend, suggesting that it may not be the best choice for investors seeking regular income from dividends. In terms of growth, Carmax Inc receives a moderate score of 3, showing potential for steady but not explosive growth in the long term. Additionally, the company scores a 2 in resilience, indicating a moderate ability to withstand economic downturns or challenges. Momentum for Carmax Inc is rated at 3, suggesting a neutral position in terms of market trends and investor sentiment.
CarMax, Inc. is a company that sells used cars and light trucks at retail. With superstores and franchises across the United States, the company purchases, reconditions, and sells used vehicles. The Smartkarma Smart Scores provide insights into various aspects of Carmax Inc‘s performance, indicating strengths in value and momentum, while highlighting areas for potential improvement in terms of dividends, growth, and resilience. Investors looking at Carmax Inc can consider these scores as part of their overall assessment when evaluating the long-term prospects of the company.
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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