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].

Core Insights - CarMax, Inc. (KMX) is set to release its fourth-quarter fiscal 2025 results on April 10, with earnings estimated at 64 cents per share and revenues at $5.97 billion [1] - The earnings per share estimate has increased by 2 cents over the past 60 days, indicating a 100% rise compared to the previous year, while revenue is expected to grow by 6.14% year-over-year [2] Financial Performance - In the third quarter of fiscal 2025, CarMax reported adjusted earnings of 81 cents per share, exceeding the Zacks Consensus Estimate of 62 cents and up from 52 cents a year ago [3] - Revenues for the third quarter were $6.22 billion, surpassing the Zacks Consensus Estimate of $5.99 billion and reflecting a 1.2% increase from the same quarter last year [3] Strategic Developments - CarMax is the leading used car retailer in the U.S., benefiting from a strong nationwide presence and logistics network [4] - The company plans to open five new stores in fiscal 2025, including smaller cross-functional locations, and has made strategic acquisitions, such as Edmunds, to enhance its digital capabilities [4] Revenue Projections - Estimated revenues from used vehicle sales for the upcoming quarter are projected at $4.58 billion, representing a year-over-year growth of 1.8% [5] - Wholesale vehicle sales are expected to generate $892 million, indicating a 0.9% increase, while other revenues are estimated at $168.5 million, reflecting an 8.9% growth [5] Earnings Expectations - CarMax has a positive Earnings ESP of +2.44%, suggesting a likelihood of beating earnings estimates [6][7] - The company currently holds a Zacks Rank of 3 (Hold), which, combined with the positive Earnings ESP, enhances the probability of an earnings beat [7]

Group 1 - CarMax Inc is set to report its fourth-quarter results on April 10, with analysts expecting earnings of 64 cents per share, indicating a 100% increase from the same quarter last year [1] - The stock has experienced a year-to-date decline of 9.3%, but was up 0.5% at $74.09, aiming to end a three-day losing streak [1] - Historically, CarMax has shown a positive post-earnings trend, finishing higher after six of its last eight reports, with an average move of 7% over the past two years [2] Group 2 - The options market indicates a heightened interest in CarMax, with a 10-day call/put volume ratio of 3.16, ranking higher than 98% of readings from the past year [3] - The current options pricing suggests a larger expected swing of 14.5% following the earnings report, compared to the historical average [2] - There is a potential risk of a negative post-earnings move leading to an unwinding of the current optimism in the options market [3]

Core Insights - CarMax has been recognized as one of the 100 Best Companies to Work For in 2025, marking its 21st consecutive year on this prestigious list, ranking 69 overall [1][2] - The recognition is based on employee feedback, with over 1.3 million U.S. employees surveyed to assess workplace satisfaction [2] - CarMax has received additional accolades, including "Best Workplaces in Retail," "Most Innovative Companies," and recognition as a "Military Friendly Employer" [3] Company Overview - CarMax is the largest retailer of used cars in the U.S., having sold approximately 770,000 used vehicles and 550,000 wholesale vehicles during the fiscal year ending February 29, 2024 [4] - The company originated over $8 billion in receivables through CarMax Auto Finance in fiscal 2024, contributing to a total portfolio exceeding $17 billion [4] - CarMax operates over 245 store locations and employs nearly 30,000 associates [4] Employee Benefits - CarMax offers competitive pay and benefits, including immediate 401(k) eligibility with a 6% match, wellness benefits, paid time off, and tuition reimbursement [5] - Employees also receive discounts on car purchases, which can extend to family members, and access to wellness programs like gym discounts and Headspace for mindfulness [5]

Core Points - CarMax has been named one of the 100 Best Companies to Work For in 2025, marking the 21st consecutive year on this list, ranking 69 [1] - The recognition is based on employee feedback, with over 1.3 million U.S. employees surveyed by Great Place to Work [2] - CarMax has received additional accolades, including "Best Workplaces in Retail" and "Most Innovative Companies" [3] Company Overview - CarMax is the largest retailer of used cars in the U.S., selling approximately 770,000 used vehicles and 550,000 wholesale vehicles in the fiscal year ending February 29, 2024 [4] - The company originated over $8 billion in receivables through CarMax Auto Finance during fiscal 2024, contributing to a portfolio exceeding $17 billion [4] - CarMax operates over 245 store locations and employs nearly 30,000 associates [4] Employee Benefits - CarMax offers competitive pay and benefits, including discounts on car purchases for family members, immediate 401(k) eligibility with a 6% match, wellness benefits, and comprehensive medical plans [5] - Additional benefits include tuition reimbursement, adoption assistance, and an employee stock purchase plan [5]

Core Insights - The used car market is undergoing significant changes influenced by consumer preferences, technology, and economic factors, with CarMax and Carvana representing contrasting business models and trajectories [1] Group 1: Carvana's Performance - Carvana's stock has shown signs of recovery following a strong earnings report, with a revenue increase of 46% to $3.54 billion and a gross profit rise of 90% to $763 million [2][3] - The company reported a net income of $159 million and an adjusted EBITDA margin of 10.1%, indicating a shift towards profitability [3] - Analysts are optimistic about Carvana's future, projecting a stock price increase to a consensus range of $260 - $265, suggesting a healthy upside from its current price [3] Group 2: CarMax's Position - CarMax is preparing for its fourth-quarter earnings call amid significant market changes, with analysts maintaining a Hold rating and an average price target of $90.82, indicating a potential upside of 17.48% from its current price of $77.31 [6][7][8] - The company is implementing omnichannel initiatives to enhance customer experience, particularly targeting younger demographics who prefer remote shopping and flexible delivery options [9] Group 3: Business Models and Strategies - CarMax operates primarily through physical locations, which provides a reliable customer service experience but incurs higher overhead costs, while Carvana focuses on a fully online model emphasizing convenience [10] - Carvana's recovery is attributed to improved logistics, integration with ADESA, cost-cutting measures, and AI-powered customer service tools, enhancing operational efficiency [4][5] - CarMax is focusing on sustainable profitability and adapting its infrastructure to meet evolving consumer preferences, contrasting with Carvana's initial aggressive expansion strategy [12] Group 4: Market Dynamics - The potential for tariffs in the used car market could impact both companies, as rising new car prices may drive customers towards used vehicles, although market conditions can change rapidly [13] - Carvana presents a riskier but potentially more rewarding investment opportunity due to its growth potential, while CarMax offers stability and consistent profitability through its established business model [14] Group 5: Future Outlook - The success of both companies will depend on their ability to adapt to the changing used car market and effectively execute their respective strategies, with each serving different customer segments [15]

Partnership Overview - Angel City Football Club (ACFC) has announced a partnership with CarMax, the largest retailer of used cars in the U.S., designating CarMax as a Founding Partner and Official Used Auto Retailer [1] - The partnership aims to focus on community impact, particularly supporting youth sports programs in the Los Angeles area, enhancing fan engagement, and offering special promotions on game days [1][2] Community Impact Initiatives - CarMax will support the "Essentials" pillar of ACFC's commitment to Equity, Essentials, and Education, which includes providing monetary funds for youth sports access [2] - The partnership will feature the Angel City Camps Series, consisting of ten weeks of youth soccer camps serving approximately 500 kids across the greater LA region [2] Event Sponsorships - CarMax will be the Presenting Partner for ACFC's annual Season Ticket Member Event, one Title Night each season, and will provide select fans with free parking for each match [3] CarMax's Commitment to Women's Sports - CarMax has a history of championing integrity and transparency in the automotive industry and has increased its investment in women's sports partnerships since 2020 [4] - The company is also a multi-year partner with the National Women's Soccer League (NWSL) and has committed to increasing Shield bonuses over the last three years [5] Angel City Football Club Overview - ACFC, entering its fourth season in 2025, is based in Los Angeles and competes in the National Women's Soccer League [6] - The club is valued at $250 million, making it the world's most valuable women's sports team [6] CarMax Overview - In the fiscal year ending February 29, 2024, CarMax sold approximately 770,000 used vehicles and 550,000 wholesale vehicles, with over $8 billion in receivables originated through CarMax Auto Finance [8] - CarMax operates over 245 store locations and has been recognized for 20 consecutive years as one of the Fortune 100 Best Companies to Work For® [8]