CarMax delivered a strong Q1 beat, driven by higher volumes and record margins, but some gains may be temporary due to tariff pull-forward. Financing profits remain pressured by rising credit losses, and I expect ongoing provisioning to weigh on future earnings. CarMax shares now trade near my fair value target, reflecting a balanced risk/reward after recent underperformance and improved cost controls.
CarMax (KMX) shares gained Friday as the largest U.S. used car retailer posted better-than-expected profit as sales of retail vehicles increased even as prices declined.
Used-car stock CarMax Inc (NYSE:KMX) is up 3.2% at $66.41, after the company's better-than-expected first-quarter earnings and revenue results.
Although the revenue and EPS for CarMax (KMX) give a sense of how its business performed in the quarter ended May 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
CarMax Inc (NYSE:KMX) shares jumped 8% in early trade as the used car retailer's fiscal first quarter earnings report impressed investors. The company's earnings per share increased 42.3% year-over-year to $1.38, ahead of the Wall Street consensus of $1.19.
CarMax (KMX) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $0.97 per share a year ago.
Beyond analysts' top -and-bottom-line estimates for CarMax (KMX), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended May 2025.
CarMax (NYSE:KMX) is scheduled to announce its Q1 FY'26 earnings on Friday, June 20th. Analysts predict that revenue will rise to approximately $7.56 billion for the quarter, reflecting a 6% increase year-over-year, while adjusted earnings are anticipated to be around $1.19 per share, compared to $0.97 in the same quarter last year.
CarMax (KMX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
CarMax (KMX 0.62%) stock had a rough Thursday last week after the company reported weaker-than-expected earnings. It was a seemingly perfect storm of negativity: finding investor sentiment declining, missing analysts' estimates, and pulling its guidance for long-term growth.