Core Insights - CarMax reports a steady increase in consumer interest for used electric vehicles (EVs) over the last three years, with a 40% drop in average used EV prices during the same period, indicating a shift towards EV adoption [3][8] - The percentage of searches for "electric vehicle" on carmax.com has nearly doubled from January 2022 to February 2025, with notable spikes in March 2022 and June 2024 [3][8] - The Tesla Model 3 and Model Y remain the most popular EVs, while the Ford F-150 Lightning and Rivian R1T have entered the top ten list for the first time [4][8] Consumer Trends - The most traded-in vehicles for EVs at CarMax are sedans and coupes, with Toyota being the top brand traded in, followed by Honda and Ford [5] - The Tesla Model 3 is the top traded-in model for an EV, with many owners transitioning to the larger Tesla Model Y [5] Regional Insights - Oregon has surpassed California as the state with the highest percentage of EV sales relative to total vehicle sales at CarMax, with California and Washington following [6][8] - New states such as Utah, New Mexico, Minnesota, and New Jersey have entered the top ten list for EV sales compared to total vehicle sales [6] Financial Performance - In the fiscal year ending February 28, 2025, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles at auctions, with CarMax Auto Finance originating over $8 billion in receivables [9]

NEW YORK, April 21, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether CarMax and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 10, 2025, CarMa ...

Core Viewpoint - CarMax's stock experienced a significant decline following weaker-than-expected earnings, but the current valuation may present a buying opportunity as the price-to-earnings (P/E) ratio has dropped to a one-year low [1]. Financial Performance - CarMax reported a substantial 81% increase in earnings per share (EPS) year-over-year, reaching $0.58, although this fell short of analyst expectations of $0.66 [3]. - Net revenue rose by 6.7% to $6 billion, with retail used unit sales increasing by 6.2% and comparable-store used unit sales up by 5.1% [4]. - The company achieved a record gross profit per retail used unit of $2,322, indicating improved per-vehicle metrics [5]. Market Position - In 2024, CarMax captured a 3.7% share of the nationwide market for used vehicles aged 0 to 10, operating in a highly fragmented market [5]. - Online retail sales accounted for 15% of retail unit sales, with online transactions generating approximately 29% of total revenue [6]. Industry Context - The impact of tariffs on new vehicles may drive consumers towards used cars, potentially benefiting CarMax as prices for new vehicles rise [8]. - Analysts have expressed confidence in CarMax despite the earnings miss, with some upgrading their ratings based on the company's sales momentum and profit growth [9].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving CarMax and its officers or directors following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - CarMax reported fiscal fourth quarter GAAP earnings per share of $0.58, which missed analyst estimates by $0.08 [3]. - The company announced it would be removing previously assigned timeframes for long-term revenue, unit sales, and market share goals due to potential macroeconomic impacts [3]. - Following the announcement, CarMax's stock price fell by $13.61, or 17%, closing at $66.45 per share on April 10, 2025 [3]. Legal Investigation - Pomerantz LLP is conducting an investigation on behalf of CarMax investors regarding possible securities fraud or other unlawful practices [1]. - Investors are encouraged to contact Pomerantz LLP for more information about the class action [2][6]. Firm Background - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [4].

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, April 16, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises CarMax, Inc. (“CarMax” or “the Company”) (NYSE: KMX) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. CarMax investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to contact attorney Lesley F. ...

LOS ANGELES, April 15, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of CarMax, Inc. ("CarMax" or "the Company") (NYSE: KMX) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. CarMax released its Q4 and full year financial results on April 10, 2025. The Company mi ...

CarMax NYSE: KMX shares have been trending within a range for over two years and will likely remain within it in 2025. The opportunity for investors is that uncertainty in the outlook opens an entry into an otherwise good buy, driven by end-market normalization, accelerating growth, and rapidly improving operational quality.  CarMax TodayKMXCarMax$68.53 +2.08 (+3.13%) 52-Week Range$63.23▼$91.25P/E Ratio23.23Price Target$87.73Add to WatchlistThe guidance causes uncertainty, reiterating a long-term outlook f ...

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 ...

Group 1 - The article discusses the recent earnings report and outlook for CarMax, Inc. (NYSE: KMX), indicating that the stock is currently facing significant downward pressure [1] - Despite the selloff, the company maintains a position of holding the stock, suggesting a long-term view on its potential recovery [1] - The commentary highlights the ability of the investment strategy to thrive during market corrections, emphasizing a blended trading and income approach to enhance savings and retirement timelines [1] Group 2 - The article promotes a service that offers a money-back guarantee for satisfaction, indicating confidence in the investment ideas provided [3] - It emphasizes the proven track record of the team behind the investment service, suggesting reliability in their recommendations [3]

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]