CarMax (KMX) Q3 Earnings and Revenues Top Estimates

Core Insights - CarMax reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, but down from $0.81 per share a year ago, indicating an earnings surprise of +59.38% [1] - The company generated revenues of $5.79 billion for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 1.18%, but down from $6.22 billion year-over-year [2] Earnings Performance - Over the last four quarters, CarMax has surpassed consensus EPS estimates two times and topped revenue estimates three times [2] - The earnings surprise in the latest quarter contrasts with a previous quarter where the company reported earnings of $0.64 against an expectation of $1.03, resulting in a surprise of -37.86% [1][2] Stock Performance - CarMax shares have declined approximately 49.8% since the beginning of the year, while the S&P 500 has gained 14.3% [3] - The current Zacks Rank for CarMax is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $5.67 billion, and for the current fiscal year, it is $2.65 on revenues of $25.55 billion [7] - The automotive retail and wholesale parts industry, to which CarMax belongs, is currently ranked in the bottom 33% of Zacks industries, suggesting potential challenges ahead [8]