A soft earnings report pressured shares of the nation's largest independent used car retailer, while a semiconductor giant extended its rally following reports of investment talks with another tech powerhouse.
CarMax (KMX) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $0.85 per share a year ago.
CarMax missed analyst estimates on average selling prices and profit, in what the CEO describes as a challenging quarter.
CarMax, Inc. KMX will release earnings results for the second quarter, before the opening bell on Thursday, Sept. 25.
KMX readies Q2 results with EPS seen at $1.03 and revenues at $7.05 billion, as service margins rise but wholesale prices weigh.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for CarMax (KMX), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended August 2025.
Tariffs on new cars are driving up prices, boosting demand and prices for used vehicles, which benefits CarMax's core business. CarMax is attractively valued with solid revenue growth, but faces significant risks from its large auto loan portfolio and rising delinquencies. Despite recent stock declines and credit quality concerns, I rate KMX a buy, but recommend only moderate investment due to high risk.
I am upgrading CarMax from sell to hold after strong 1Q26 results and impressive retail growth, despite a tough macro environment. Management's execution on pricing and inventory, especially the Value Max program, drove robust sales across both budget and premium segments. Credit quality in the CarMax Auto Finance segment remains a concern, with elevated loan loss provisions and declining financing penetration posing earnings headwinds.
CarMax (NYSE:KMX) stock surged nearly 6% during trading on Friday. These gains were driven by the company reporting better-than-expected Q1 results, with revenue rising around 6% year-over-year to $7.55 billion, aligning with estimates, while earnings exceeded predictions at $1.38 per share.
Used car retailer CarMax saw greater loan losses and economic uncertainty during the quarter ended May 31. [contact-form-7] In response, the company's CarMax Auto Finance (CAF) business boosted its provision for loan losses during the quarter to $101.7 million, up from $81.
CarMax, Inc. (NYSE:KMX ) Q1 2026 Earnings Conference Call June 20, 2025 9:00 AM ET Company Participants David L. Lowenstein - Vice President of Investor Relations Enrique N.
KMX surpasses Q1 earnings estimates, driven by strong used-vehicle sales and rising unit volumes.