CarMax Q1 Earnings Surpass Expectations, Revenues Increase Y/Y

Core Insights - CarMax Inc. reported adjusted earnings per share of $1.38 for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $1.18 and up from $0.97 in the prior year [1][9] - The company's revenues reached $7.55 billion, surpassing the Zacks Consensus Estimate of $7.52 billion and reflecting a 6% year-over-year increase [1] Segmental Performance - Used-vehicle net sales amounted to $6.1 billion, a 7.5% increase year-over-year, driven by a 9% rise in unit sales to 230,210 vehicles, exceeding the forecast of 207,124 units [2] - The average selling price (ASP) of used vehicles decreased by 1.5% to $26,120, which was below the projected ASP of $28,279 [2] - Comparable store used-vehicle units increased by 8.1%, with revenues rising by 6.6% year-over-year; gross profit per unit (GPU) was $2,407, up from $2,347 in the prior year but below the estimate of $2,376.8 [3] Wholesale Vehicle Performance - Wholesale vehicle revenues decreased by 0.3% year-over-year to $1.25 billion, falling short of the projection of $1.27 billion due to lower-than-expected ASP [4] - Units sold in the wholesale segment rose by 1.2% to 149,517, exceeding the forecast of 145,645; however, the ASP fell by 1.7% to $7,959, below the estimate of $8,717 [4] - Wholesale GPU was $1,047, down from $1,064 in the prior year but above the estimate of $1,033.3 [4] Other Revenues and Expenses - Other sales and revenues increased by 6.1% year-over-year to $190.4 million, missing the estimate of $196.2 million [5] - CarMax Auto Finance's income fell by 3.6% year-over-year to $141.7 million [5] - Selling, general, and administrative expenses rose by 3.3% to $659.6 million [5] Share Repurchase Activity - During the fiscal first quarter, CarMax repurchased shares worth $199.8 million and had $1.74 billion remaining under its share repurchase authorization as of May 31, 2025 [6]