Core Insights - DriveItAway Holdings, Inc. has appointed Mitch Fadel, former CEO of Upbound Group and Rent-A-Center, to its Board of Advisors, enhancing its leadership in the lease-to-own sector [1] - Fadel's experience in the subprime alternative credit market positions DriveItAway to transform automotive retail and improve access to vehicle ownership for underserved markets [1] - The company recently announced a national partnership with Free2move, integrating flexible lease-to-own technology with OEM-backed vehicle supply, which is expected to facilitate rapid expansion [1] Company Overview - DriveItAway Holdings, Inc. is a national dealer-focused mobility platform that enables car dealers to sell vehicles through an eCommerce model with an exclusive "lease-to-own" app-based subscription [3] - The company offers a comprehensive program that includes proprietary mobile technology, driver app, insurance coverages, and training to help dealerships capitalize on online sales opportunities [3] Leadership Achievements - Mitch Fadel has a proven track record of accelerating growth and creating new retail divisions during his tenure at Upbound Group and Rent-A-Center, including completing over $2 billion in acquisitions [6] - His leadership at EZ Pawn resulted in a 25% profit increase and a tripling of the stock price within a year, showcasing his capability in driving shareholder value [6]

Financial Performance - Net earnings per share decreased by 24.7% year-over-year to $0.64 in Q2 2026 [19, 22] - Total gross profit decreased by 5.6% year-over-year to $717.7 million [19] - SG&A expense decreased by 1.6% year-over-year to $601.1 million [19] - CarMax Auto Finance (CAF) income decreased by 11.2% year-over-year to $102.6 million [22] - Loan loss provision increased by 26.3% year-over-year to $142.2 million, driven by CY22/23 vintages [22] Sales Performance - Overall unit sales decreased by 5.4% [19] - Retail used unit sales decreased by 2.2% [19] - Wholesale unit sales decreased by 6.3% [19] - Comparable store used unit sales increased by 1.8% [19] Strategic Initiatives - Announced incremental SG&A reductions of at least $150 million over the next 18 months [12] - Digital capabilities supported 80% of retail unit sales [12, 45] - CAF is targeting an increase in penetration from 42% to 50% [51] Capital Allocation - The company is targeting a net leverage ratio between 1.50x and 2.00x [28] - Adjusted net cash from operating activities was $1.022 billion year-to-date [32] - The company returned $210 million to shareholders via share repurchases year-to-date [33]

Core Insights - CarMax Inc reported weaker-than-expected second-quarter results, with earnings per share of 64 cents, missing the analyst consensus estimate of $1.09 [1] - Quarterly sales totaled $6.594 billion, down 6% year over year, and also missed the expected $7.024 billion [1] Financial Performance - CarMax Auto Finance (CAF) reported income of $102.6 million, a decline of 11.2%, due to higher loan loss provisions despite gains in net interest margins [2] - Total gross profit was $717.7 million, down 5.6% compared to the previous year's second quarter [5] - Quarterly SG&A expenses decreased by 1.6% to $601.1 million compared to the prior-year quarter [6] Sales and Unit Performance - Combined retail and wholesale used vehicle unit sales fell 4.1% to 338,031 [2] - Retail used vehicle unit sales declined 5.4% to 199,729, with comparable store used unit sales down 6.3% [3] - Wholesale vehicle unit sales slipped 2.2% to 138,302, with wholesale revenues edging down 0.4% [3] Margins and Other Metrics - Unit margins remained solid, with gross profit of $2,216 per retail used unit and $993 per wholesale unit [5] - Extended Protection Plans generated a margin of $576 per retail unit, roughly matching last year's second quarter [5] Strategic Developments - The company opened three new store locations and a stand-alone reconditioning/auction center in Virginia [5][6] - CarMax aims to achieve at least $150 million in incremental SG&A reductions over the next 18 months [6] Cash Flow and Stock Performance - CarMax exited the quarter with cash and equivalents worth $1.16 billion and generated $1.085 billion in operating cash flow for the six months ended August 31 [7] - The stock price fell 12.04% to $50.18 during premarket trading, breaching its 52-week low of $54.53 [7]

Core Viewpoint - CarMax Inc experienced a significant decline in its second-quarter performance, with earnings and revenue falling short of analyst expectations due to weaker retail sales and increased loan loss provisions [1][2]. Financial Performance - The company reported second-quarter earnings per share of 64 cents, missing the analyst consensus estimate of $1.09 [1]. - Quarterly sales totaled $6.594 billion, down 6% year over year, and also missed the expected $7.024 billion [1]. - Total gross profit was $717.7 million, a decrease of 5.6% compared to the same quarter last year [6]. Segment Performance - CarMax Auto Finance (CAF) reported income of $102.6 million, down 11.2%, primarily due to higher loan loss provisions [2]. - Retail used vehicle unit sales declined by 5.4% to 199,729, with comparable store used unit sales down 6.3% [3]. - Wholesale vehicle unit sales decreased by 2.2% to 138,302, while wholesale revenues edged down 0.4% [3]. Sales and Operations - Combined retail and wholesale used vehicle unit sales fell 4.1% to 338,031 [2]. - The company purchased a total of 293,000 vehicles in the second quarter, a 2.4% decrease from the previous year [4]. - The company opened three new store locations and a stand-alone reconditioning/auction center to support market operations [6][7]. Margins and Expenses - Unit margins remained solid, with gross profit of $2,216 per retail used unit and $993 per wholesale unit [6]. - Quarterly SG&A expenses decreased by 1.6% to $601.1 million compared to the prior-year quarter, with plans for further efficiency improvements [7].

Group 1 - The third quarter is concluding with stocks reaching new highs despite weaker economic data and anticipation surrounding the Federal Reserve [2][3] - A significant day for earnings is expected, with major companies like Costco, Accenture, and Jabil reporting [3][4] - Economic data releases today include Durable Goods Orders, Q2 GDP Data, Initial Jobless Claims, and Existing Home Sales, marking a busy day for economic indicators [4]

Core Insights - CarMax, Inc. reported a decrease in retail used unit sales by 5.4% and a 6.3% decline in comparable store used unit sales for the second quarter ended August 31, 2025 [1] - Wholesale units also saw a decrease of 2.2% [1] - Despite the decline in unit sales, the company maintained solid unit margins, with gross profit per retail used unit at $2,216, gross profit per wholesale unit at $993, and Extended Protection Plans (EPP) margin per retail unit at $576, all consistent with the prior year's second quarter [1]

Group 1 - Whales have taken a bearish stance on CarMax, with 60% of trades being bearish and 40% bullish, indicating a cautious outlook among large investors [1] - The detected trades include 6 puts totaling $297,311 and 4 calls totaling $140,935, reflecting a significant preference for bearish positions [1] - Major market movers are focusing on a price band between $50.0 and $70.0 for CarMax over the last three months, suggesting a range of expected price movement [2] Group 2 - Analyzing volume and open interest provides insights into the liquidity and interest for CarMax's options, particularly within the $50.0 to $70.0 strike price range over the last 30 days [3] - Significant options trades include bearish puts with total trade prices of $82.7K and $66.7K, alongside bullish calls with a total trade price of $49.8K, indicating mixed sentiment [8] - CarMax is the largest used-vehicle retailer in the US, with used-vehicle sales accounting for 83% of fiscal 2025 revenue, and it aims to increase its market share from 3.7% to over 5% [9] Group 3 - The current market status of CarMax shows a consensus target price of $65.0 from market experts, with a neutral rating from JP Morgan [10][11] - The stock price of KMX is currently $57.22, down 0.66%, with a trading volume of 3,664,049, and RSI indicators suggest it may be approaching oversold conditions [13]

Company Overview - CarMax, Inc. (KMX) has a market capitalization of $8.6 billion, making it the largest retailer of used vehicles in the U.S. and a leading operator of wholesale vehicle auctions [1] - The company operates through two segments: CarMax Sales Operations, which includes auto merchandising and related services, and CarMax Auto Finance, which provides financing solutions for customers [1] Financial Performance - CarMax is expected to announce its Q2 2026 results on September 25, with analysts forecasting an EPS of $1.03, representing a 21.2% increase from $0.85 in the same quarter last year [2] - For fiscal 2026, analysts predict an EPS of $3.89, up nearly 19% from $3.27 in fiscal 2025 [3] - In Q1 2026, CarMax reported revenue of $7.55 billion, a 6% increase, and a record EPS of $1.38, which is a 42% increase from the previous year [5] Market Performance - Over the past 52 weeks, CarMax shares have dropped 24.5%, underperforming the S&P 500 Index's gain of 16.4% and the Consumer Discretionary Select Sector SPDR Fund's return of 19.1% [4] - Following the Q1 2026 results, shares of CarMax climbed 6.6% on June 20, driven by positive investor sentiment [5] Analyst Sentiment - The consensus view on KMX stock is moderately optimistic, with a "Moderate Buy" rating overall among 19 analysts [6] - The breakdown of recommendations includes nine "Strong Buy," three "Moderate Buy," five "Hold," one "Moderate Sell," and one "Strong Sell," indicating a slightly more bullish outlook compared to three months ago [6]

Earnings Report - CarMax, Inc. is set to release its second-quarter earnings results on September 25, with analysts expecting earnings of $1.03 per share, an increase from 85 cents per share in the same period last year [1] - The company projects quarterly revenue of $7.02 billion, slightly up from $7.01 billion reported a year earlier [1] Recent Performance - In the first quarter, CarMax reported better-than-expected earnings and revenue, attributed to strong retail sales and improved margins [2] - Following the first-quarter results, CarMax shares fell by 0.9%, closing at $57.60 [2] Analyst Ratings - JP Morgan analyst Rajat Gupta maintained a Neutral rating and raised the price target from $58 to $65 [4] - Wedbush analyst Scott Devitt reiterated an Outperform rating with a price target of $84 [4] - Stephens & Co. analyst Jeff Lick reiterated an Overweight rating with a price target of $81 [4] - Mizuho analyst David Bellinger maintained a Neutral rating and cut the price target from $80 to $78 [4] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and raised the price target from $72 to $74 [4]

Earnings Report - CarMax, Inc. is set to release its second-quarter earnings results on September 25, with analysts expecting earnings of $1.03 per share, an increase from 85 cents per share in the same period last year [1] - The company projects quarterly revenue of $7.02 billion, slightly up from $7.01 billion reported a year earlier [1] Recent Performance - In the first quarter, CarMax reported better-than-expected earnings and revenue, attributed to strong retail sales and improved margins [2] - Despite the positive earnings report, CarMax shares fell by 0.9%, closing at $57.60 [2] Analyst Ratings - JP Morgan analyst Rajat Gupta maintained a Neutral rating and raised the price target from $58 to $65 [4] - Wedbush analyst Scott Devitt reiterated an Outperform rating with a price target of $84 [4] - Stephens & Co. analyst Jeff Lick maintained an Overweight rating with a price target of $81 [4] - Mizuho analyst David Bellinger maintained a Neutral rating but cut the price target from $80 to $78 [4] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and raised the price target from $72 to $74 [4]