CarMax (KMX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - CarMax (KMX) reported a revenue of $5.79 billion for the quarter ended November 2025, reflecting a year-over-year decline of 6.9% and an EPS of $0.51, down from $0.81 a year ago, but exceeding the Zacks Consensus Estimate for revenue by 1.18% and for EPS by 59.38% [1] Financial Performance Metrics - Comparable Store Used Vehicles Sales decreased by 8.1%, slightly worse than the average estimate of -7.8% [4] - The total number of stores was 250, below the average estimate of 256 [4] - Gross Profit per Unit for used vehicles was $2,235, surpassing the average estimate of $2,207.35 [4] - Gross Profit per Unit for wholesale vehicles was $899, lower than the average estimate of $918.80 [4] - Average Selling Prices for wholesale vehicles were $8.14 thousand, slightly above the estimated $8.06 thousand [4] - Net sales and operating revenues for wholesale vehicles were $1.1 billion, exceeding the average estimate of $1.05 billion, but representing a year-over-year decline of 6.3% [4] - Net sales and operating revenues for other sales and revenues were $150.63 million, below the average estimate of $159.33 million, marking a 9.2% year-over-year decline [4] - Net sales and operating revenues for used vehicles were $4.55 billion, slightly above the average estimate of $4.52 billion, reflecting a 7% year-over-year decrease [4] - Other sales and revenues from third-party finance fees were reported at -$3 million, significantly worse than the average estimate of $0.5 million, indicating a 400% year-over-year decline [4] - Extended protection plan revenues were $96.6 million, below the average estimate of $101.08 million, representing an 8.4% year-over-year decline [4] - Other sales and revenues from advertising & subscription were $35.1 million, lower than the estimated $36.6 million, showing a 2.8% year-over-year decrease [4] Stock Performance - CarMax shares have returned +20.1% over the past month, outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]