Truist Securities analyst Scot Ciccarelli reiterated a Hold rating on the shares of Carmax Inc KMX with a price forecast of $88.00.CarMax delivered strong fourth-quarter results, with used vehicle same-store sales rising 5.1%, slightly below expectations but showing notable improvement from the prior quarter.Average selling prices remained steady year over year, and unit volume aligned with projections. Adjusted earnings per share were estimated at $0.64, slightly above the expected $0.62.The company reaffi ...

In today's column, we discuss the just reported earnings and outlook for CarMax, Inc. (NYSE: KMX ). This is a stock we have traded many times, but it is getting crushed now. However, we continue to hold aSelloff got you down? We are thriving during it at BAD BEAT InvestingWe have the right high-conviction picks and have helped our members hedge, and done well in this selloff. We also have pinpointed areas to buy during the correction. Enjoy more rapid-returns with our strategy to advance your savings and re ...

Financial Data and Key Metrics Changes - For Q4 FY 2025, total sales reached $6 billion, a 7% increase year-over-year, primarily driven by higher volume [12] - Net earnings per diluted share were $0.58, up 81% compared to the previous year, with adjusted EPS at $0.64, doubling from a year ago [23] - Total gross profit was $668 million, reflecting a 14% increase from the same quarter last year [23] - SG&A expenses for Q4 were $611 million, up 5% from the prior year, but leveraged by 770 basis points due to growth in gross profit [26] Business Line Data and Key Metrics Changes - Retail unit sales increased by 6.2% in Q4, while used unit comps were up 5.1% despite one less selling day [12] - Retail gross profit per used unit reached a record $2,322, up from $2,251 in the previous year [14] - Wholesale unit sales increased by 3.1% year-over-year, with wholesale gross profit per unit at $1,045, down from $1,120 [14][15] Market Data and Key Metrics Changes - CarMax's market share for age zero to 10-year-old used vehicles was 3.7% in calendar 2024, consistent with 2023 [13] - The company experienced a recovery in market share during the second half of 2024 after initial pressure in the first half [13] Company Strategy and Development Direction - The company aims to achieve ongoing growth in retail and wholesale unit sales and market share, targeting double-digit EPS growth for years to come [49] - Plans include opening six new store locations and four stand-alone reconditioning and auction centers in FY 2026, up from five and two, respectively, in FY 2025 [33] - The focus is on enhancing digital capabilities and customer experience, with a new marketing campaign planned to highlight omnichannel experiences [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to gain further market share and achieve significant earnings growth despite macroeconomic challenges [14][50] - The company is closely monitoring the impact of potential new car tariffs on used car prices and consumer behavior [78][80] - Management highlighted the importance of operational efficiencies and cost management in response to rising parts costs due to tariffs [80] Other Important Information - CarMax was recognized by Fortune Magazine as one of the 100 best companies to work for for the 21st consecutive year [51] - The company opened its 250th store during the fourth quarter, marking a significant milestone [52] Q&A Session Summary Question: Insights on share losses in the first half and gains in the second half - Management attributed the share losses to a significant price correction in the previous year and highlighted improvements in customer experience and inventory acquisition as drivers for the second half gains [60][64] Question: Quarter-to-date used comp trends and impact of new car tariffs - Management reported strong comp trends in December and January, with high single-digit growth expected in the first quarter [72][74] Question: Inventory acquisition strategy amid tariff uncertainty - Management emphasized their expertise in inventory management and the ability to adapt to changing market conditions, ensuring a robust inventory strategy [128] Question: Service gross profit improvement - Management noted that efficiency improvements, cost coverage, and positive sales contributed to the better performance in service gross profit [134][136]

CarMax’s digital capabilities now support over 80% of its used car sales, executives said Thursday (April 10) during a quarterly earnings call.The user car retailer and auto finance company saw increases in both omnichannel and online retail sales during the fourth quarter, which ended Feb. 28, they said.“We are proud to offer customers the ability to progress seamlessly through and across online and in-store channels, delivering what our research affirms is the most customer-centric buying and selling expe ...

CarMax Inc. (KMX) reported fourth-quarter fiscal 2025 (ended Feb. 28, 2025) adjusted earnings per share of 64 cents, which came in line with the Zacks Consensus Estimate. The bottom line rose from 32 cents per share recorded in the year-ago period. The auto retailer registered revenues of $6 billion in the quarter under review, which surpassed the Zacks Consensus Estimate of $5.99 billion. The top line also rose 6.7% year over year. See the Zacks Earnings Calendar to stay ahead of market-making news.Segment ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the quarter ended February 2025, CarMax (KMX) reported revenue of $6 billion, up 6.7% over the same period last year. EPS came in at $0.64, compared to $0.32 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $5.99 billion, representing a surprise of +0.20%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.64.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

CarMax posted significant growth in earnings in its latest quarterly results, yet missed market expectations on revenue and EPS.Used car retailer CarMax (KMX 8.87%) reported fiscal 2025 fourth-quarter and full-year earnings on Thursday, April 10, that fell short of analysts' consensus expectations. While it missed estimates of $0.66, earnings grew substantially year over year, with EPS hitting $0.58. Revenue for the quarter $6 billion rose 6.7% year over year but came in just below the forecasted $6.035 bil ...

CarMax (KMX) came out with quarterly earnings of $0.64 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this used car dealership chain would post earnings of $0.62 per share when it actually produced earnings of $0.81, delivering a surprise of 30.65%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.CarMax, which belongs t ...

Financial Performance - Net revenues for the fourth quarter reached $6.0 billion, an increase of 6.7% year-over-year[3]. - For the three months ended February 28, 2025, net sales and operating revenues increased to $6,003.1 million, up from $5,626.6 million in the same period of 2024, representing a growth of 6.7%[27]. - Net earnings for the three months ended February 28, 2025, were $89.9 million, representing a significant increase of 78.8% from $50.3 million in the same period of 2024[33]. - Net earnings for 2025 increased to $500,556, up from $479,204 in 2024, representing a growth of approximately 6.5%[47]. - Basic net earnings per share for the three months ended February 28, 2025, were $0.58, compared to $0.32 in the same period of 2024[42]. Gross Profit and Expenses - Total gross profit was $667.9 million, up 13.9%, with gross profit per retail used unit reaching a record $2,322, an increase of $71 per unit[3][9]. - Gross profit for the three months ended February 28, 2025, was $667.9 million, a 13.9% increase from $586.2 million in the prior year[28]. - Used vehicle gross profit per unit rose to $2,322, an increase of 8.8% compared to $2,251 in the same quarter of 2024[29]. - Total SG&A expenses for the three months ended February 28, 2025, were $610.5 million, a 5.1% increase from $580.9 million in the same quarter of 2024[30]. - SG&A expenses rose by 5.1% to $610.5 million, but as a percentage of gross profit, it decreased by 770 basis points to 91.4%[11]. CarMax Auto Finance - CarMax Auto Finance (CAF) income increased by 8.2% to $159.3 million, driven by growth in net interest margin percentage[12]. - CarMax Auto Finance (CAF) income for the three months ended February 28, 2025, was $159.3 million, up from $147.3 million in the same period of 2024, reflecting an increase of 8.6%[32]. - The weighted average contract rate for loans was 11.1% for the three months ended February 28, 2025, down from 11.5% in the same period of 2024[32]. - The net penetration rate for loans remained stable at 42.3% for both the three months ended February 28, 2025, and 2024[32]. - CarMax Auto Finance originated over $8 billion in receivables during fiscal 2025, contributing to a nearly $18 billion portfolio[37]. Store Expansion and Operations - Two new store locations were opened in Mays Landing, New Jersey, and Visalia, California, bringing the total to 250 stores[15]. - For fiscal 2026, the company plans to open six new store locations and four stand-alone reconditioning/auction centers, with capital expenditures expected to be approximately $575 million[16]. - CarMax has 250 store locations and over 30,000 associates, maintaining its position as the largest retailer of used autos in the U.S.[37]. Cash Flow and Investments - Net cash provided by operating activities rose to $624,439 in 2025, compared to $458,617 in 2024, marking an increase of about 36.2%[47]. - Capital expenditures for 2025 were $467,939, slightly higher than $465,307 in 2024, indicating a stable investment level[47]. - The company reported a net cash used in financing activities of $(453,537) in 2025, compared to a net cash provided of $307,787 in 2024, indicating a shift in financing strategy[47]. - The net cash used in investing activities was $(461,002) in 2025, slightly lower than $(466,998) in 2024, indicating a consistent investment approach[47]. Recognition and Workforce - The company has been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For®[37].