Core Viewpoint - Analysts project that CarMax (KMX) will report quarterly earnings of $1.03 per share, reflecting a year-over-year increase of 21.2%, with revenues expected to reach $7.05 billion, a 0.6% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.1%, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate 'Net sales and operating revenues- Used vehicle' at $5.78 billion, a 1.9% increase from the prior-year quarter [5]. - 'Net sales and operating revenues- Wholesale vehicle' is projected at $1.16 billion, reflecting a 0.4% increase from the year-ago quarter [5]. - 'Net sales and operating revenues- Other sales and revenues' is expected to be $186.64 million, indicating a year-over-year change of 2.6% [6]. - 'Other sales and revenues- Extended protection plan revenues' is forecasted to reach $126.26 million, suggesting a 4% year-over-year change [6]. Operational Metrics - The total number of stores is projected to be 252, up from 247 in the same quarter last year [7]. - The average selling price for used vehicles is expected to be $26.29 thousand, slightly up from $26.25 thousand in the same quarter of the previous year [7]. - The consensus estimate for 'Gross Profit per Unit - Used vehicle' stands at $2,294.14, compared to $2,269.00 in the same quarter last year [8]. - 'Unit Sales - Wholesale vehicles' are expected to reach 145,484, up from 141,458 in the same quarter last year [9]. - 'Unit Sales - Combined retail and wholesale used vehicle' is projected at 361,780, compared to 352,478 a year ago [9]. - 'Unit Sales - Used vehicles' is estimated at 216,296, compared to 211,020 in the same quarter last year [10]. Market Performance - Over the past month, CarMax shares have returned -2.7%, while the Zacks S&P 500 composite has changed by +4% [11].

Core Insights - Carvana reported revenue of $4.84 billion for the quarter ended June 2025, reflecting a year-over-year increase of 41.9% [1] - The company's EPS was $1.28, significantly higher than the $0.14 reported in the same quarter last year [1] - Revenue exceeded the Zacks Consensus Estimate of $4.58 billion by 5.62%, and EPS surpassed the consensus estimate of $1.10 by 16.36% [1] Financial Performance Metrics - Retail vehicle unit sales reached 143,280, slightly above the average estimate of 141,766 [4] - The gross profit per retail unit was $7,426, exceeding the average estimate of $7,168.09 [4] - The gross profit per retail vehicle was $3,636, compared to the estimated $3,426.22 [4] - Retail vehicle revenue per unit was $23,765, higher than the average estimate of $23,237.88 [4] - Wholesale vehicle revenue per unit was $10,746, surpassing the estimated $9,871.81 [4] - Wholesale vehicle unit sales totaled 72,770, exceeding the average estimate of 66,543 [4] Revenue Breakdown - Retail vehicle sales generated $3.41 billion, above the average estimate of $3.27 billion, marking a year-over-year increase of 41.2% [4] - Other sales and revenues amounted to $411 million, exceeding the estimated $394.09 million, with a year-over-year change of 47.3% [4] - Wholesale sales and revenues reached $1.02 billion, surpassing the average estimate of $881.48 million, reflecting a year-over-year increase of 42.2% [4] Market Performance - Carvana's shares returned -0.5% over the past month, while the Zacks S&P 500 composite increased by 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Metrics Definitions - The report defines Non-GAAP Gross Profit, Non-GAAP SG&A Expense, and Adjusted EBITDA as key metrics for understanding the business[3] - Adjusted EBITDA is calculated as Non-GAAP Gross Profit minus Non-GAAP SG&A Expense[7] Unit Sales Performance - Retail units sold increased from 108,651 in Q2 2024 to 143,280 in Q2 2025[8] - Wholesale vehicle units sold increased from 50,368 in Q1 2024 to 72,770 in Q2 2025[8] - Wholesale marketplace units transacted increased from 234,361 in Q2 2024 to 258,756 in Q2 2025[8] Gross Profit per Unit (GPU) Analysis - Total GPU (GAAP) increased from $7,049 in Q2 2024 to $7,426 in Q2 2025, a $377 increase[9] - Retail GPU (Non-GAAP) increased from $3,539 in Q2 2024 to $3,734 in Q2 2025, a $195 increase, driven by lower recon and inbound costs and tariff-related effects[9] - Wholesale vehicle GPU (Non-GAAP) increased from $483 in Q2 2024 to $558 in Q2 2025, a $75 increase, due to lower wholesale depreciation rates and higher wholesale units volume[9] - Wholesale marketplace GPU (Non-GAAP) decreased from $621 in Q2 2024 to $461 in Q2 2025, a $160 decrease, despite a 5% increase in wholesale marketplace units transacted, offset by 41% retail units sold[9] - Other GPU (Non-GAAP) increased from $2,701 in Q2 2024 to $2,827 in Q2 2025, a $126 increase, due to improvements in cost of funds offset by lower sell through rate and higher VSC attach rate[9] SG&A Expense per Unit Analysis - Total SG&A Expense per Unit (GAAP) decreased from $4,485 in Q2 2024 to $3,846 in Q2 2025, a $639 decrease[9] - Total SG&A Expense per Unit (Non-GAAP) decreased from $3,845 in Q2 2024 to $3,385 in Q2 2025, a $460 decrease[9] - Carvana Operations SG&A per unit decreased by $147 from Q2 2024 to Q2 2025 due to continued operations efficiencies[9] - Wholesale marketplace Operations SG&A per unit decreased by $29 from Q2 2024 to Q2 2025 due to cost leverage on retail units sold growth[9] - Overhead SG&A per unit decreased by $328 from Q2 2024 to Q2 2025 due to cost leverage on retail units sold growth[9] - Advertising SG&A per unit increased by $44 from Q2 2024 to Q2 2025 due to increased advertising spend[9]

Key Takeaways Carvana's (CVNA) primary sources of operating cash flows are derived from the sale of retail vehicles, wholesale vehicles, originated loans and complementary products, including vehicle service contracts, GAP waiver coverage and other related offerings. The main uses of cash in operating activities include inventory purchases, personnel-related expenses and customer acquisition costs. For the years ended Dec. 31, 2024 and 2023, Carvana generated $918 million and $803 million in cash from opera ...

Core Viewpoint - CarMax (KMX) is expected to report quarterly earnings of $1.22 per share, a 25.8% increase year-over-year, with revenues projected at $7.56 billion, reflecting a 6.3% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.9% over the past 30 days, indicating analysts' reassessment of their projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue and Sales Projections - Analysts estimate 'Net sales - Wholesale vehicles' to reach $1.31 billion, a 4.7% increase from the prior year [5]. - 'Net sales - Other' is projected at $189.91 million, indicating a 5.8% year-over-year change [5]. - 'Net sales - Used vehicles' is expected to be $6.05 billion, reflecting a 6.6% increase year-over-year [5]. - The consensus for 'Other sales and revenues - Extended protection plan revenues' stands at $129.56 million, a 9.1% increase from the previous year [6]. Store and Unit Sales Estimates - Analysts project a total of 251 stores, up from 245 in the same quarter last year [6]. - 'Unit sales - Total vehicles' are expected to reach 378,575, compared to 358,817 a year ago [9]. - 'Unit sales - Used vehicles' is estimated at 224,745, up from 211,132 in the previous year [9]. Profitability Metrics - 'Revenue per vehicle retailed (ASP) - Used vehicles' is forecasted to be $26.84 thousand, compared to $26.53 thousand last year [7]. - 'Gross Profit per Unit - Used vehicles gross profit' is expected to be $2,384.83, up from $2,347 last year [7]. - 'Gross Profit per Unit - Wholesale vehicles gross profit' is projected at $1,070.91, compared to $1,064 last year [8]. - 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' is expected to be $8.29 thousand, compared to $8.09 thousand last year [10]. Market Performance - CarMax shares have decreased by 3.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.7% [10]. - CarMax holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [11].

Non-GAAP Metrics Definition - Non-GAAP Gross Profit is defined as GAAP gross profit plus depreciation and amortization expense in cost of sales and share-based compensation expense in cost of sales, minus revenue related to Root Warrants[3] - Non-GAAP SG&A Expense is defined as GAAP SG&A expenses minus depreciation and amortization expense in SG&A expenses, share-based compensation expense in SG&A expenses, and restructuring expense in SG&A expenses[4] - Adjusted EBITDA is defined as net income (loss) plus income tax provision (benefit), interest expense, net, other operating expense, net, other income, net, depreciation and amortization expense in cost of sales and SG&A expenses, share-based compensation expense in cost of sales and SG&A expenses, loss on debt extinguishment, and restructuring expense in cost of sales and SG&A expenses, minus revenue related to Root Warrants; Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues[5] - Non-GAAP Gross Profit minus Non-GAAP SG&A Expense equals Adjusted EBITDA[6] Unit Sales - Retail units sold in Q1 2023 were 79,240, increasing to 91,878 in Q1 2024, and further to 133,898 in Q1 2025[7] - Wholesale vehicle units sold in Q1 2023 were 35,110, increasing to 44,155 in Q1 2024, and further to 63,454 in Q1 2025[7] - Wholesale marketplace units transacted in Q1 2023 were 213,764, increasing to 242,647 in Q1 2024, and further to 248,624 in Q1 2025[7] GPU & SG&A Expense Changes (Q1 2024 vs Q1 2025) - Total GPU, GAAP increased by $506, from $6,432 to $6,938[8] - Retail GPU, Non-GAAP increased by $97, from $3,211 to $3,308, driven by lower recon and inbound cost and lower retail depreciation rates, offset by decreases in spreads[8] - Wholesale marketplace GPU, Non-GAAP decreased by $160, from $631 to $471, due to +9% growth in wholesale marketplace gross profit, Non-GAAP offset by 46% retail units sold growth[8] - Total SG&A Expense per Unit, GAAP decreased by $967, from $4,963 to $3,996[8] - Total SG&A Expense per Unit, Non-GAAP decreased by $750, from $4,245 to $3,495[8]