Key Takeaways Sonic Automotive Q4 EPS rose 1% to $1.52 but missed estimates; revenues fell 1% to $3.87B.Franchised Dealerships same-store revenues dropped 5%, with retail units down 4% Y/Y.EchoPark revenues fell 5% as used-vehicle sales declined 7% and volumes slipped 6%.Sonic Automotive, Inc. (SAH) posted fourth-quarter 2025 adjusted earnings per share of $1.52, which increased 1% year over year but missed the Zacks Consensus Estimate of $1.53. Total revenues declined 1% year over year to $3.87 billion and ...

Core Insights - General Motors (GM) reported a revenue of $45.29 billion for the quarter ended December 2025, reflecting a decrease of 5.1% year-over-year and a surprise of -1.83% compared to the Zacks Consensus Estimate of $46.13 billion. The earnings per share (EPS) was $2.51, up from $1.92 in the same quarter last year, resulting in an EPS surprise of +14.24% against the consensus estimate of $2.20 [1][2]. Financial Performance - Total wholesale vehicle sales for GM amounted to 937 thousand, which was below the three-analyst average estimate of 962.44 thousand [4]. - Total net sales and revenue for GM Financial reached $4.3 billion, exceeding the average estimate of $4.19 billion by five analysts, marking a year-over-year increase of +4.6% [4]. - Total net sales and revenue for Total Automotive was reported at $40.99 billion, slightly below the average estimate of $41.19 billion, indicating a year-over-year decline of -6% [4]. - Total net sales and revenue for Total Automotive - GMNA was $36.89 billion, compared to the average estimate of $36.76 billion, reflecting a year-over-year decrease of -6.7% [4]. - The operating segment for GMNA reported $2.24 billion, surpassing the average estimate of $2.11 billion by four analysts [4]. Stock Performance - Over the past month, GM shares have returned -4.2%, contrasting with the Zacks S&P 500 composite's increase of +0.4%. The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3].

Core Insights - CarMax Inc. reported third-quarter fiscal 2026 adjusted earnings per share of 51 cents, exceeding the Zacks Consensus Estimate of 32 cents, but down from 81 cents in the same quarter last year. Revenues reached $5.8 billion, surpassing the Zacks Consensus Estimate of $5.7 billion, although sales declined by 6.9% year over year [1][9]. Segment Performance - Used-vehicle net sales for CarMax totaled $4.54 billion, a decrease of 7% year over year, attributed to an 8% decline in unit sales, totaling 169,557 vehicles, which was below the forecast of 191,402 units. The average selling price (ASP) of used vehicles increased by 0.9% to $26,383, exceeding the projection of $25,578 [3]. - Comparable store used-vehicle units decreased by 9%, with revenues falling by 8.1% from the prior year. The gross profit per unit (GPU) for used vehicles was $2,235, down from $2,306 in the previous year but above the estimate of $1,978.2 [4]. - Wholesale vehicle revenues decreased by 6.3% year over year to $1,095.1 million, which was above the projection of $1,069.4 million. Units sold fell by 6.2% to 127,603, below the forecast of 139,339. The ASP for wholesale vehicles declined by 0.5% to $8,137, surpassing the estimate of $7,675. Wholesale GPU was $899, down from $1,015 in the prior year but above the estimate of $840.6 [5]. - Other sales and revenues decreased by 9.2% year over year to $150.6 million, missing the estimate of $170.3 million. CarMax Auto Finance's income rose by 9.3% year over year to $174.7 million [6]. Financial Overview - Selling, general, and administrative expenses increased by 1% year over year to $581.4 million. As of November 30, 2025, CarMax had cash and cash equivalents of $204.9 million and long-term debt of $1.17 billion. During the fiscal third quarter, the company repurchased shares worth $201.6 million, with $1.36 billion remaining under the share repurchase authorization [7].

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]

Core Insights - CarMax reported a decrease in both retail and wholesale used vehicle sales for the third quarter, indicating a need for strategic changes despite its strong brand and infrastructure [3][4][5]. Sales Performance - Combined retail and wholesale used vehicle unit sales were 297,160, a decrease of 7.2% from the prior year's third quarter [4]. - Total retail used vehicle unit sales decreased 8.0% to 169,557 compared to the prior year's third quarter [5]. - Total wholesale vehicle unit sales decreased 6.2% to 127,603 versus the prior year's third quarter [6]. Revenue Analysis - Total retail used vehicle revenues decreased 7.0% compared to the prior year's third quarter, primarily due to the decrease in retail used units sold [5]. - Total wholesale revenues declined 6.3% compared to the prior year's third quarter, driven by the decrease in wholesale units sold [6]. - Other sales and revenues decreased by 9.2%, or $15.2 million, compared with the third quarter of fiscal 2025 [7]. Profitability Metrics - Total gross profit was $590.0 million, down 12.9% versus last year's third quarter [8]. - Retail used vehicle gross profit decreased 10.8%, with gross profit per used unit at $2,235, down $71 from last year's record [8][10]. - Wholesale vehicle gross profit decreased 16.9%, reflecting lower wholesale unit volume and gross profit per unit, which declined $116 to $899 per unit [9]. Operational Changes - SG&A expenses increased 1.0% to $581.4 million, driven by increased advertising spend and restructuring charges related to leadership changes [11][10]. - The company is on track to achieve SG&A reductions of at least $150 million in exit rate savings by the end of fiscal 2027 [12]. Financing and Investment - CarMax Auto Finance (CAF) income increased 9.3% to $174.7 million, aided by a gain on sale of $27.0 million from a securitization transaction [14][13]. - The weighted average contract rate for CAF was 11.0%, down from 11.2% in the prior year's third quarter [15]. Shareholder Returns - The company repurchased 4.6 million shares of common stock for $201.6 million during the third quarter [16]. - As of November 30, 2025, $1.36 billion remained available for repurchase under the outstanding authorization [16]. Future Outlook - The company anticipates improved sales performance trends through enhanced price competitiveness and increased marketing spend in the fourth quarter [21].

Core Viewpoint - CarMax, Inc. will report its financial results for the third quarter ended November 30, 2025, on December 18, 2025, and will host a conference call to discuss these results [1][2]. Company Overview - CarMax is the largest retailer of used autos in the United States, known for its integrity, honesty, and transparency in automotive retail [4]. - In the fiscal year ending February 28, 2025, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles at its auctions [4]. - CarMax Auto Finance originated over $8 billion in receivables during fiscal 2025, contributing to a nearly $18 billion portfolio [4]. - The company operates more than 250 store locations and employs over 28,000 associates [4]. - CarMax has been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For® [4]. Leadership Changes - David McCreight has been appointed as Interim President and Chief Executive Officer, while Tom Folliard serves as Interim Executive Chair of the Board [6].

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]

Core Insights - Sonic Automotive, Inc. (SAH) reported second-quarter 2025 adjusted earnings per share of $2.19, exceeding the Zacks Consensus Estimate of $1.63 and reflecting a 49% increase from the previous year [1] - Total revenues reached $3.66 billion, surpassing the Zacks Consensus Estimate by 0.44% and increasing from $3.45 billion in the same quarter last year [1] Revenue Breakdown - Consolidated revenues from new vehicle sales amounted to $1.7 billion, up 7% year over year; used vehicle sales were $1.18 billion, nearly flat; and wholesale vehicle sales totaled $83.3 million, up 17% [2] - Revenues from parts, service, and collision repair increased by 12% to $495.6 million, while finance, insurance, and other revenues rose 17% year over year to $202.1 million [2] Franchised Dealerships Segment - In the Franchised Dealerships segment, revenues from new vehicle sales were $1.66 billion (up 7% year over year), used vehicle sales were $745 million (up 2%), and wholesale vehicle sales were $57.8 million (up 19%) [3] - Parts, service, and collision repair revenues increased by 12% to $484.9 million, and finance, insurance, and other revenues rose 16% to $144.3 million [3] - Same-store revenues increased by 6% to over $3 billion, with same-store retail units of new and used vehicles totaling 52,451, up 1% from the same quarter of 2024 [3] EchoPark Segment - The EchoPark segment reported quarterly revenues of $508.6 million, down 2% year over year, with used vehicle sales contributing $427.4 million (down 5%), wholesale vehicle sales at $25.4 million (up 16%), and finance, insurance, and other revenues at $55.8 million (up 20%) [4] - The segment sold 16,742 used vehicles and 3,097 wholesale vehicles, reflecting a 1% and 19% increase year over year, respectively [4] Powersports Segment - In the Powersports segment, revenues from new vehicle sales totaled $26.9 million (up 24% year over year), used vehicle sales were $8.3 million (up 57%), while wholesale vehicle sales decreased to $0.3 million (down 67%) [5] - Parts, service, and collision repair revenues rose by 9% to $10.6 million, with finance, insurance, and other revenues at $2 million [5] - Same-store revenues increased by 12% to $42.2 million, with same-store retail units of new and used vehicles totaling 1,962, up 19% year over year [5] Financial Metrics - Selling, general, and administrative expenses decreased by 5% year over year to 68.5% of gross profit [6] - Cash and cash equivalents stood at $110.4 million as of June 30, 2025, up from $44 million as of December 31, 2024; long-term debt decreased to $1.47 billion from $1.51 billion over the same period [6] Dividend Announcement - Sonic Automotive increased its quarterly dividend by 9% to $0.38 per share, payable on October 15, 2025, to shareholders of record as of September 15 [7]

Core Insights - General Motors (GM) reported a revenue of $47.12 billion for the quarter ended June 2025, reflecting a decrease of 1.8% year-over-year, with EPS at $2.53 compared to $3.06 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $46.25 billion by 1.89%, and the EPS also surpassed the consensus estimate of $2.39 by 5.86% [1] Financial Performance - Total net sales and revenue for GM Financial reached $4.26 billion, exceeding the average estimate of $4.02 billion, marking an 8.6% year-over-year increase [4] - Total net sales and revenue for Total Automotive was $42.87 billion, slightly below the estimated $41.02 billion, representing a decline of 2.7% year-over-year [4] - Total net sales and revenue for Total Automotive - GMNA was $39.49 billion, compared to the estimated $37.56 billion, indicating a decrease of 3% year-over-year [4] Vehicle Sales - Worldwide wholesale vehicle sales totaled 974 thousand, surpassing the estimated 949.67 thousand [4] - GMNA's wholesale vehicle sales were 849 thousand, exceeding the estimate of 828.43 thousand [4] - Total GMI wholesale vehicle sales were 125 thousand, slightly below the estimate of 131.05 thousand [4] Stock Performance - GM shares returned +9.7% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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]