- CarMax’s earnings per share (EPS) for the first quarter were $1.38, surpassing the estimate of $1.17, and showing significant improvement from the previous year’s 97 cents.
- Net sales and operating revenue increased by 6.1% year-over-year, reaching $7.55 billion, exceeding the estimate of $7.52 billion.
- Used vehicle sales rose by 7.5% year-over-year to $6.10 billion, beating the expected $6.03 billion.
- Wholesale vehicle sales slightly decreased by 0.3% year-over-year, amounting to $1.25 billion, falling short of the $1.3 billion estimate.
- Other sales were reported at $190.4 million, just below the anticipated $192.8 million.
- Extended protection plan revenues increased by 11% from the previous year to $131.7 million, exceeding the forecast of $129.6 million.
- Retail used vehicle unit sales totaled 230,210, a rise of 9% from the previous year, surpassing the estimate of 223,386 vehicles sold.
- Used vehicle gross profit saw a 12% year-over-year increase, reaching $554.2 million, above the estimated $529.8 million.
- Wholesale vehicle gross profit slightly declined by 0.3% year-over-year, totaling $156.6 million, which was lower than the $162 million estimate.
- Comparable store used unit sales increased by 8.1%.
- Analyst recommendations include 12 buys, 5 holds, and 3 sells.
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Carmax Inc on Smartkarma
Analyst coverage of Carmax Inc on Smartkarma by Baptista Research highlights the company’s strong performance in the used car retail market. In their report titled “CarMax Inc.: Digital Transformation & Omnichannel Experience As A Critical Growth Lever! – Major Drivers,” they emphasize how CarMax reported positive results in its third quarter fiscal year 2025. The growth in the retail, wholesale, and CarMax Auto Finance (CAF) segments contributed to an increase in earnings per share. Baptista Research attributes this success to both internal execution and favorable external conditions, such as a more stable environment for vehicle valuations.
Baptista Research‘s stance on Carmax Inc leans bullish, reflecting their optimistic outlook on the company’s potential for continued growth and success. As a prominent player in the used car retail market, Carmax’s diversified business model and focus on digital transformation and omnichannel experience are seen as critical levers for driving further expansion. Investors seeking insights on Carmax from independent analysts can turn to Smartkarma for in-depth research reports like those provided by Baptista Research, which shed light on the factors influencing Carmax’s performance and future prospects.
A look at Carmax Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
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., the retail giant in the used car market, is positioned well for long-term growth according to the Smartkarma Smart Scores. With a strong Value score of 4, the company is considered attractive in terms of its stock valuation. This indicates that CarMax Inc. may offer a good investment opportunity based on its current price relative to its intrinsic value.
Although CarMax Inc. may not be a top pick for dividend investors with a score of 1 in that category, it shows potential for growth with a score of 3. Additionally, the company demonstrates moderate resilience and momentum with scores of 2 in each category. Overall, CarMax Inc.’s positive outlook on value and growth factors suggests promising prospects for investors in the long run.
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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