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CarMax Inc. (KMX - Free Report) reported third-quarter fiscal 2025 (ended Nov. 30, 2024) adjusted earnings per share of 81 cents, which beat the Zacks Consensus Estimate of 62 cents. The bottom line also rose from 52 cents per share recorded in the year-ago period. The auto retailer registered revenues of $6.22 billion in the quarter under review, which surpassed the Zacks Consensus Estimate of $5.99 billion. The top line also rose 1.2% year over year.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
CarMax’s used-vehicle net sales totaled $4.89 billion for the reported quarter, up 1.2% year over year, owing to a rise in unit sales. The units sold in this segment rose 5.4% year over year to 184,243 vehicles and topped our forecast of 172,504 units. The average selling price (ASP) of used vehicles tailed off 3.9% from the year-ago quarter to $26,153 and missed our projection of $26,788. Amid higher-than-expected units sold, revenues from the segment surpassed our estimate of $4.62 billion.
Comparable store used-vehicle units increased 4.3% and revenues rose 0.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,306, which increased from the prior-year quarter’s $2,277 and matched our estimate.
For the fiscal third quarter, wholesale vehicle revenues increased 0.3% from the year-ago level to $1,168.6 million. The reported figure was below our projection of $1,171.5 million due to lower-than-anticipated units sold and ASP. Units sold rose 6.3% to 136,013 (versus our forecast of 137,506) but the ASP dipped 5.7% to $8,177 (versus our estimate of $8,520). Wholesale vehicle GPU came in at $1,015, which rose from the year-ago period’s $961 but missed our estimate of $1,028.3.
Other sales and revenues increased 9.7% year over year to $165.9 million, which beat our estimate of $162.6 million. CarMax Auto Finance income increased 7.6% year over year to $159.9 million at the end of the fiscal third quarter.
Other Tidbits
Selling, general and administrative expenses increased 2.8% from the prior-year quarter to $575.8 million. The firm had cash/cash equivalents and long-term debt of $271.9 million and $1.59 billion, respectively, as of Nov. 30, 2024.
During the fiscal third quarter, CarMax repurchased shares worth $114.8 million. As of Nov. 30, 2024, it had $2.04 billion remaining under the share repurchase authorization.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 3.36%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 6 cents in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.
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CarMax's Q3 Earnings Surpass Expectations, Increase Y/Y
CarMax Inc. (KMX - Free Report) reported third-quarter fiscal 2025 (ended Nov. 30, 2024) adjusted earnings per share of 81 cents, which beat the Zacks Consensus Estimate of 62 cents. The bottom line also rose from 52 cents per share recorded in the year-ago period. The auto retailer registered revenues of $6.22 billion in the quarter under review, which surpassed the Zacks Consensus Estimate of $5.99 billion. The top line also rose 1.2% year over year.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
CarMax, Inc. Price, Consensus and EPS Surprise
CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote
Segmental Performance
CarMax’s used-vehicle net sales totaled $4.89 billion for the reported quarter, up 1.2% year over year, owing to a rise in unit sales. The units sold in this segment rose 5.4% year over year to 184,243 vehicles and topped our forecast of 172,504 units. The average selling price (ASP) of used vehicles tailed off 3.9% from the year-ago quarter to $26,153 and missed our projection of $26,788. Amid higher-than-expected units sold, revenues from the segment surpassed our estimate of $4.62 billion.
Comparable store used-vehicle units increased 4.3% and revenues rose 0.5% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,306, which increased from the prior-year quarter’s $2,277 and matched our estimate.
For the fiscal third quarter, wholesale vehicle revenues increased 0.3% from the year-ago level to $1,168.6 million. The reported figure was below our projection of $1,171.5 million due to lower-than-anticipated units sold and ASP. Units sold rose 6.3% to 136,013 (versus our forecast of 137,506) but the ASP dipped 5.7% to $8,177 (versus our estimate of $8,520). Wholesale vehicle GPU came in at $1,015, which rose from the year-ago period’s $961 but missed our estimate of $1,028.3.
Other sales and revenues increased 9.7% year over year to $165.9 million, which beat our estimate of $162.6 million. CarMax Auto Finance income increased 7.6% year over year to $159.9 million at the end of the fiscal third quarter.
Other Tidbits
Selling, general and administrative expenses increased 2.8% from the prior-year quarter to $575.8 million. The firm had cash/cash equivalents and long-term debt of $271.9 million and $1.59 billion, respectively, as of Nov. 30, 2024.
During the fiscal third quarter, CarMax repurchased shares worth $114.8 million. As of Nov. 30, 2024, it had $2.04 billion remaining under the share repurchase authorization.
CarMax’s Zacks Rank & Other Key Picks
KMX currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Tesla, Inc. (TSLA - Free Report) and Blue Bird Corporation (BLBD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 3.36%. EPS estimates for 2024 have improved 22 cents in the past 60 days. EPS estimates for 2025 have improved 6 cents in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.