- CarMax reported third-quarter earnings per share (EPS) of 43 cents, which is higher than the estimated 38 cents but lower than the previous year’s 81 cents.
- Net sales and operating revenue decreased by 6.9% year-over-year to $5.79 billion, exceeding the estimate of $5.64 billion.
- Used vehicle sales amounted to $4.55 billion, a decline of 7% compared to the previous year, yet surpassed the anticipated $4.43 billion.
- Wholesale vehicle sales were $1.10 billion, down 6.3% year-over-year, but ahead of the expected $1.02 billion.
- Other sales were $150.6 million, falling short of the $161.6 million estimate.
- Revenues from extended protection plans decreased by 8.4% to $96.6 million, compared to the projected $101.5 million.
- Retail used vehicle unit sales totaled 169,557 vehicles, an 8% year-over-year decrease, slightly below the estimate of 171,626 vehicles.
- Used vehicle gross profit was $378.9 million, a drop of 11% from the previous year and close to the predicted $379.2 million.
- Wholesale vehicle gross profit fell by 17% to $114.8 million, slightly above the expected $114.2 million.
- Sales in comparable stores decreased by 9%, with an estimate of an 8.43% decline.
- CarMax plans to increase marketing spend to boost acquisitions, although to a lesser extent than in the third quarter.
- The company is on track to achieve at least $150 million in SG&A reductions by the end of fiscal 2027.
- Despite its strong infrastructure and brand, CarMax acknowledges the need for change based on recent results, as stated by Interim President and CEO David McCreight.
- Analysts have rated CarMax with 3 buys, 15 holds, and 4 sells.
Carmax Inc on Smartkarma
Analyst coverage of CarMax Inc on Smartkarma has been insightful, with Baptista Research offering a bullish perspective on the company’s performance. In their research reports, Baptista Research highlighted CarMax’s mixed second quarter results for fiscal year 2026, with total sales declining by 6% year-over-year due to lower volume. Retail unit sales and used unit comps also saw declines, indicating challenges in the market.
Furthermore, Baptista Research emphasized CarMax’s digital overhaul in another report, questioning whether increased website visits would translate into significant sales. Despite the challenges, the analysts pointed out CarMax’s strengths in their fiscal 2026 first quarter results, noting positive retail unit comp growth, double-digit earnings per share expansion, and successful implementation of an omnichannel shopping model.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| 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 leading retailer of used cars and light trucks, is positioned favorably for long-term growth according to Smartkarma Smart Scores. With a top score of 5 for value, the company is considered to be offering good value for investors. Additionally, the growth score of 3 suggests moderate potential for expansion in the future. However, the lower scores in dividends, resilience, and momentum indicate areas that may require attention for improvement.
Overall, CarMax Inc’s smart scores paint a positive picture for its long-term outlook, especially in terms of value and growth. Despite lower scores in certain areas, the company’s strong presence in the used vehicle market and its nationwide network of superstores and franchises provide a solid foundation for continued success and profitability in the years to come.
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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