Richmond, Virginia-based CarMax, Inc. (KMX) is one of the largest retailers of used vehicles in the U.S. and one of the nation's largest operators of wholesale vehicle auctions. With a market cap of $4.5 billion, CarMax operates through Sales Operations and Auto Finance segments. The used vehicle retailer has significantly underperformed the broader market over the past year. KMX stock prices have tanked 58.2% on a YTD basis and 55.5% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 16.4% re ...

Core Insights - CarMax, Inc. is a leading retailer of used vehicles in the U.S., operating through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF) [1] - The company is currently under investigation for allegedly misleading investors regarding its growth prospects, particularly related to unsustainable growth in fiscal 2026 [2][6] Financial Performance - CarMax reported an 11.2% decrease in income from CAF in the second quarter of fiscal 2026, attributed to a provision for loan losses of $142.2 million, an increase from $112.6 million the previous year [3][6] - The provision included $71.3 million in estimated lifetime losses on existing loans and $70.9 million for current quarter originations [3] Stock Market Reaction - Following the financial disclosure, CarMax's stock price fell by approximately 20%, closing at $45.60 on September 26, 2025 [4][6] - As of the latest data, CarMax's stock is trading at $34.20, with a market capitalization of $5.21 billion and a trading volume of 2,735,900 shares [5]

Summary of Sonic Automotive Conference Call Company Overview - **Company**: Sonic Automotive - **Industry**: Automotive Retail - **Segments**: - Franchise business (new vehicles) - EchoPark (used vehicles) - Power Sports (motorcycles, personal watercrafts, ATVs) - **Market Cap**: Approximately $2 billion - **Debt**: About $1.5 billion - **Net Cash**: Approximately $100 million - **Stock Information**: 22 Class A shares and 12.12 million Class B shares, closed around $62 [1][1][1] Core Business Insights - **Franchise Business**: Includes brands like Porsche, Audi, BMW, and Honda. This is the largest segment. - **EchoPark**: A used car segment similar to CarMax and Carvana, which has seen growth opportunities due to low multiples compared to the franchise business. - **Power Sports**: Recently entered market with potential for high returns due to low multiples and opportunities for consolidation [3][3][3][4][4][4]. Financial Health and Market Conditions - **F&I Loan Book**: - Average FICO score in franchise and EchoPark is around 710. - Approval rates in EchoPark are about 55%, with concerns about delinquencies in the subprime market [5][5][6][6]. - **Retail Environment**: - New vehicle sales are projected at a SAR of 15.8-16.2 million, indicating a healthy market. - National inventory supply is at 89 days, similar to pre-COVID levels, but varies by brand [10][10][11][11]. - **Luxury Brands**: - Sales slowed in October, particularly for Mercedes-Benz, BMW, and Audi, prompting calls for increased incentives [11][12][12]. - **Electric Vehicles**: - EV penetration reached 12% in Sonic's mix, compared to 10.5% industry-wide, with a focus on luxury brands [15][15][15][16][16]. Consumer Behavior and Affordability - **Consumer Sentiment**: - There are concerns about slower consumer spending and affordability, with average monthly payments for new vehicles at $750 [17][17][22][22]. - **Market Dynamics**: - The mix of higher-margin vehicles (SUVs and trucks) is contributing to sustained margins despite affordability concerns [32][32][32]. - **Used Vehicle Market**: - Used vehicle GPU has seen fluctuations, with expectations of supply tailwinds in the coming years as off-lease maturities increase [33][33][33]. Strategic Initiatives - **EchoPark Segment**: - Reduced locations from 50 to 18 to optimize inventory and profitability. Plans to expand again in 2026 as lease returns increase [46][46][49][49]. - **Power Sports Market**: - Entering a fragmented market with low multiples, aiming for consolidation and modernization similar to past automotive retail trends [56][56][57][57]. - **Capital Allocation**: - Focus on acquisitions this year, with plans for increased dividends and organic growth in the future [59][59]. Competitive Landscape - **Carvana and CarMax**: - Sonic Automotive differentiates itself through pricing and brand awareness, targeting a different demographic and vehicle mix [51][51][53][53]. - **Market Position**: - Sonic has performed well compared to peers, leading in new unit sales and gross profit growth [38][38][38]. Conclusion - Sonic Automotive is navigating a complex automotive retail environment with strategic focus on optimizing its segments, addressing consumer affordability, and leveraging growth opportunities in both the used vehicle and Power Sports markets. The company remains vigilant about market conditions and consumer sentiment while planning for future expansion and profitability.

Core Insights - Asbury Automotive (ABG) reported Q3 2025 adjusted earnings per share of $7.17, exceeding the Zacks Consensus Estimate of $6.80 and up from $6.35 in the previous year, driven by strong gross profits from new vehicle sales, finance and insurance, and parts and service [1][9] - Total revenues for the quarter reached $4.80 billion, marking a nearly 13% year-over-year increase and surpassing the Zacks Consensus Estimate of $4.69 billion [1][9] Segment Performance - New vehicle revenues increased by 17% year over year to $2.53 billion, exceeding the Zacks Consensus Estimate of $2.44 billion, supported by a higher number of units sold, totaling 48,070 (up 13% year over year) [2] - The average selling price (ASP) for new vehicles was $52,609, up 4% year over year, also beating the consensus mark of $52,259 [2] - Gross profit from new vehicle sales was $161 million, a 7% increase from the prior year, surpassing the Zacks Consensus Estimate of $157 million [2] Used Vehicle Performance - Used vehicle retail revenues rose 7% year over year to $1.23 billion but fell short of the Zacks Consensus Estimate of $1.24 billion due to lower unit sales, totaling 37,696 (up 1% year over year) [3] - The ASP for used vehicles was $32,543, up 6% year over year, exceeding the consensus estimate of $31,576 [3] - Gross profit from used vehicles was $61.5 million, a 10% year-over-year increase, but missed the Zacks Consensus Estimate of $63 million [3] Wholesale and Finance Performance - Revenues from the used vehicle wholesale business increased by 27% to $185.5 million, beating the consensus mark of $160 million, although gross profit of $3.8 million fell short of the estimate of $4.15 million [4] - Net revenues from the finance and insurance business reached $200.3 million, an 8% increase year over year, surpassing the Zacks Consensus Estimate of $187 million [5] - Gross profit from finance and insurance was $187.1 million, up 9% year over year, exceeding the consensus estimate of $178 million [5] Parts and Service Performance - Revenues from the parts and service business were $659.4 million, up from $593.1 million in the prior year but missed the Zacks Consensus Estimate of $661 million [6] - Gross profit from this segment was $389.1 million, surpassing the consensus mark of $388 million and reflecting a 9% year-over-year increase [6] Financial Metrics - Selling, general & administrative expenses as a percentage of gross profit rose to 65.7%, an increase of 70 basis points year over year [7] - As of September 30, 2025, the company had cash and cash equivalents of $32.2 million, down from $69.4 million as of December 31, 2024, with long-term debt increasing to $3.6 billion from $3.14 billion [7]

Key Takeaways Group 1 posted Q3 EPS of $10.45, missing estimates but up 5.6% year over year.Revenues totaled $5.8B, beating forecasts and improving from last year's $5.2B.New, used and service sales all grew, while share repurchases totaled $82.5M.Group 1 Automotive (GPI) reported third-quarter 2025 adjusted earnings per share (EPS) of $10.45, which missed the Zacks Consensus Estimate of $10.64 but rose 5.6% year over year. The automotive retailer registered net sales of $5.8 billion, which beat the Zacks C ...

Financial Performance - For the quarter ended September 2025, Penske Automotive reported revenue of $7.7 billion, an increase of 1.4% year-over-year [1] - EPS for the quarter was $3.23, down from $3.36 in the same quarter last year, indicating a decline [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $7.74 billion, resulting in a surprise of -0.58% [1] - The company experienced an EPS surprise of -7.18%, with the consensus EPS estimate being $3.48 [1] Key Metrics - Retail Automotive Gross Profit Per Vehicle Retailed for new vehicles was $4,726, lower than the estimated $4,983.74 [4] - Retail Commercial Truck Revenue Per Vehicle Retailed for new vehicles was $144,435, slightly above the average estimate of $143,116.50 [4] - Retail Commercial Truck Units totaled 5,108, below the average estimate of 6,187 [4] - Retail Automotive Units for used vehicles were 54,708, exceeding the average estimate of 53,055 [4] - Revenue from Retail Automotive for new vehicles was $2.96 billion, below the average estimate of $3 billion, but showed a year-over-year increase of 2.5% [4] - Revenue from Retail Automotive for fleet and wholesale was $352 million, slightly below the average estimate of $354.9 million, representing a year-over-year decline of 1% [4] - Revenue from Retail Automotive for service and parts was $818.3 million, compared to the average estimate of $834.2 million, reflecting a year-over-year increase of 5.2% [4] - Revenue from Retail Automotive for finance and insurance was $195.9 million, below the average estimate of $202.53 million, with a year-over-year increase of 1.5% [4] - Revenue from Retail Automotive for used vehicles was $2.24 billion, exceeding the estimated $2.1 billion, representing a year-over-year increase of 5.6% [4] - Total revenue from Retail Automotive was $6.57 billion, slightly above the average estimate of $6.5 billion, with a year-over-year increase of 3.6% [4] - Revenue from Retail Commercial Truck was $918.6 million, significantly below the average estimate of $1.04 billion, indicating a year-over-year decline of 13.6% [4] - Revenue from Commercial Vehicle Distribution and Other was $206.6 million, above the average estimate of $200.51 million, showing a year-over-year increase of 10.6% [4] Stock Performance - Penske's shares have returned -6.3% over the past month, contrasting with the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Camping World (CWH) reported $1.81 billion in revenue for Q3 2025, a year-over-year increase of 4.7% and a surprise of +0.58% over the Zacks Consensus Estimate of $1.8 billion [1] - The EPS for the quarter was $0.43, significantly higher than $0.13 a year ago, with a surprise of +19.44% compared to the consensus estimate of $0.36 [1] Financial Performance - Unit sales of new vehicles were 20,286, below the average estimate of 22,018 [4] - Average selling price for used vehicles was $31,512, lower than the estimated $32,714.65 [4] - Average selling price for new vehicles was $37,798, exceeding the estimate of $36,053.57 [4] - Unit sales of used vehicles reached 18,694, surpassing the average estimate of 16,267 [4] - Revenue from Good Sam Services and Plans was $52.51 million, slightly below the estimate of $53.55 million, with a year-over-year change of +3.3% [4] - Revenue from RV and Outdoor Retail for new vehicles was $766.78 million, significantly lower than the estimate of $828.85 million, representing a year-over-year decline of -7.1% [4] - Revenue from RV and Outdoor Retail for used vehicles was $589.09 million, exceeding the estimate of $525.01 million, with a year-over-year increase of +31.7% [4] - Revenue from RV and Outdoor Retail for Good Sam Club was $10.81 million, below the estimate of $11.73 million, reflecting a year-over-year change of -0.8% [4] - Revenue from RV and Outdoor Retail Finance and insurance, net, was $178.3 million, slightly above the estimate of $176.24 million, with a year-over-year increase of +7.2% [4] - Total revenue from RV and Outdoor Retail was $1.75 billion, below the estimate of $1.77 billion, with a year-over-year change of +4.8% [4] - Revenue from RV and Outdoor Retail Products, service, and other was $208.63 million, lower than the estimate of $227.9 million, representing a year-over-year decline of -7.2% [4] - Gross profit from RV and Outdoor Retail Products, Service, and Other was $94.21 million, below the average estimate of $108.77 million [4] Stock Performance - Shares of Camping World have returned +1.7% over the past month, compared to the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Group 1 Automotive reported record quarterly revenues of $5.8 billion, gross profit of $920 million, adjusted net income of $135 million, and adjusted diluted EPS of $10.45 from continuing operations [13] - Adjusted SG&A as a percentage of gross profit increased 160 basis points sequentially to 65.8% [15] - Cash flow generation yielded $500 million of adjusted operating cash flow and $352 million of free cash flow after accounting for $148 million of CapEx [19] Business Line Data and Key Metrics Changes - U.S. operations showed strong performance across all business lines, with record quarterly results in used vehicles, parts and service, and F&I [13] - New vehicle unit sales rose mid-single digits, while new vehicle GPUs moderated by approximately 6% due to expiring tax credits [13][14] - U.K. used vehicle same-store revenues were up over 5% on a local currency basis, with volumes up 4%, but same-store GPUs declined by over 24% [16] Market Data and Key Metrics Changes - The U.K. market remains challenging with inflation and cost pressures, but the after-sales business continues to expand [4][16] - The overall U.S. environment remains dynamic with ongoing policy and trade uncertainty, yet demand remained consistent throughout the quarter [9][11] - The U.K. market is expected to stabilize around a SAR of approximately 2 million units over the next five years [59] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio, controlling costs, and enhancing operational efficiency, particularly in the U.K. [9][19] - Group 1 plans to exit the Jaguar Land Rover brand in the U.K. within 24 months, reallocating resources to more profitable areas [8][66] - The company continues to pursue disciplined investments and share repurchases to create long-term shareholder value [12][20] Management Comments on Operating Environment and Future Outlook - Management expressed a cautious but confident stance regarding the U.S. market, balancing discipline in spending with targeted investments [11] - The U.K. environment is expected to improve as OEMs rationalize their networks and throughput per rooftop increases [57][59] - Management noted that while the luxury market is showing some signs of softness, it is not yet significant enough to be termed a trend [24] Other Important Information - The company took a $123.9 million asset impairment charge due to the decision to exit the JLR brand [8] - The U.K. operations faced a GBP 3 million impact from a cyber attack, affecting profitability [9] - The company has implemented headcount reductions and restructuring initiatives to improve efficiency [17] Q&A Session Summary Question: U.S. luxury trend softening - Management indicated that while there are signs of a shift, it is not yet material enough to call it a trend, with a focus on the upcoming fourth quarter for clarity [24][25] Question: JLR exit and property reallocation - Management confirmed that they own most of the real estate and are exploring better uses for it, potentially reallocating to other brands [27] Question: U.K. capacity and Chinese brands - Management is considering partnerships with Chinese OEMs but remains focused on luxury brands for now [30][31] Question: Used GPUs in the U.S. - Management acknowledged stabilization in the used car business but noted it remains competitive, maintaining discipline in auction purchases [32][34] Question: Parts and service dynamics in the U.S. - Management reported strong growth in customer pay and warranty, with a focus on maintaining healthy margins despite challenges in the collision business [38][40] Question: Forward demand and pricing changes - Management has not observed significant changes in pricing beyond normal hikes, with OEMs taking a long-term view on tariff impacts [49][50] Question: U.K. market outlook - Management believes the U.K. market will stabilize with improved throughput per rooftop and ongoing cost management efforts [57][59]

Third Quarter 2025 Financial Results Investor Presentation October 28, 2025 Group 1 Automotive 2025 Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements ...

Core Insights - Sonic Automotive, Inc. (SAH) reported Q3 2025 adjusted earnings per share of $1.41, missing the Zacks Consensus Estimate of $1.82 but showing an 11.9% increase from the previous year [1][9] - Total revenues reached $4 billion, exceeding the Zacks Consensus Estimate of $3.67 billion and rising 14% from $3.5 billion in the same quarter last year [1][9] Revenue Breakdown - Consolidated revenues from new vehicle sales were $1.9 billion, up 19% year over year; used vehicle sales generated $1.25 billion, up 6%; and wholesale vehicle sales totaled $84.2 million, up 25% [2] - Revenues from parts, service, and collision repair increased 11% to $533.9 million, while finance, insurance, and other revenues rose 16% to $203.8 million [2] - Total gross profit increased 13% to $615.5 million [2] Franchised Dealerships Segment - Revenues from new vehicle sales in this segment were $1.86 billion, up 19% year over year; used vehicle sales were $796.7 million, up 14%; and wholesale vehicle sales reached $52.8 million, up 25% [3] - Parts, service, and collision repair revenues increased 11% to $510.1 million, and finance, insurance, and other revenues jumped 21% to $147.6 million [3] - Same-store revenues rose 11% to over $3 billion, with same-store retail units of new and used vehicles totaling 54,897, a 5% increase from the same quarter of 2024 [3] EchoPark Segment - The EchoPark segment reported quarterly revenues of $522.5 million, down 4% year over year, with used vehicle sales at $439.2 million (down 7%) and wholesale vehicle sales at $30.4 million (up 28%) [4] - The segment sold 16,353 used vehicles and 3,224 wholesale vehicles, reflecting a decrease of 8% and an increase of 19%, respectively, year over year [4] Powersports Segment - Revenues from new vehicle sales in the Powersports segment totaled $38.8 million, up 44% year over year; used vehicle sales reached $17.2 million, up 91%; while wholesale vehicle sales were $1 million, down 9% [5] - Parts, service, and collision repair revenues rose 18% to $23.8 million, with same-store revenues up 35% to $78.3 million [5] - Same-store retail units of new and used vehicles were 2,822, a 42% increase year over year [5] Financial Metrics - Selling, general, and administrative expenses increased 15% year over year to 73.4% of gross profit [6] - Cash and cash equivalents stood at $89.4 million as of September 30, 2025, up from $44 million as of December 31, 2024 [6] - Long-term debt decreased to $1.44 billion as of September 30, 2025, down from $1.51 billion as of December 31, 2024 [6] Dividend Announcement - Sonic Automotive announced a quarterly dividend of 38 cents per share, payable on January 15, 2025, to stockholders of record as of December 15 [7] Market Position - Sonic Automotive currently holds a Zacks Rank 3 (Hold) [8] - Other better-ranked stocks in the auto sector include Cooper-Standard Holdings Inc. (CPS), OPENLANE, Inc. (KAR), and Garrett Motion Inc. (GTX), each with a Zacks Rank 1 (Strong Buy) [8]