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CarMax posted Q3 EPS of $0.51, topping estimates, while revenues of $5.8B declined 6.9% year over year.
KMX used-vehicle sales fell 7% as units dropped 8%, partly offset by a 0.9% rise in average selling price.
CarMax saw wholesale revenues down 6.3%, auto finance income up 9.3%, and repurchased $201.6M in shares.
CarMax Inc. (KMX - Free Report) reported third-quarter fiscal 2026 (ended Nov. 30, 2025) adjusted earnings per share of 51 cents, which beat the Zacks Consensus Estimate of 32 cents. The bottom line fell from 81 cents recorded in the year-ago period. Revenues totaled $5.8 billion, which exceeded the Zacks Consensus Estimate of $5.7 billion, though sales fell 6.9% year over year.
CarMax’s used-vehicle net sales totaled $4.54 billion for the reported quarter, down 7% year over year due to a decline in unit sales. The units sold in this segment declined 8% year over year to 169,557 vehicles and fell short of our forecast of 191,402 units. The average selling price (ASP) of used vehicles increased 0.9% from the year-ago quarter’s level to $26,383, which surpassed our projection of $25,578. Amid lower-than-expected units sold, revenues from the segment missed our estimate of $4.90 billion.
Comparable store used-vehicle units decreased 9% and revenues fell 8.1% from the prior-year level. Used-vehicle gross profit per unit (GPU) was $2,235, which fell from the prior-year quarter’s $2,306 but surpassed our estimate of $1,978.2.
For the fiscal third quarter, wholesale vehicle revenues decreased 6.3% from the year-ago level to $1,095.1 million. The reported figure was above our projection of $1,069.4 million. Units sold fell 6.2% to 127,603 (versus our forecast of 139,339) and the ASP declined 0.5% year over year to $8,137 (versus our estimate of $7,675). Wholesale vehicle GPU was $899, which fell from the year-ago period’s $1,015 but topped our estimate of $840.6.
Other sales and revenues decreased 9.2% year over year to $150.6 million but missed our estimate of $170.3 million. CarMax Auto Finance’s income rose 9.3% year over year to $174.7 million at the end of the fiscal third quarter.
Other Tidbits
Selling, general and administrative expenses increased 1% from the prior-year quarter’s level to $581.4 million. The firm had cash/cash equivalents and long-term debt of $204.9 million and $1.17 billion, respectively, as of Nov. 30, 2025.
During the fiscal third quarter, CarMax repurchased shares worth $201.6 million. As of Nov. 30, 2025, it had $1.36 billion remaining under the share repurchase authorization.
Earnings Releases of Other Auto Stocks
THOR Industries, Inc. (THO - Free Report) reported earnings of 41 cents per share for the first quarter of fiscal 2026 (ended Oct. 31), which topped the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings of 26 cents per share in the corresponding quarter of fiscal 2025. THOR registered revenues of $2.39 billion for the fiscal first quarter, which beat the Zacks Consensus Estimate of $2.12 billion. The top line rose 11.5% year over year.
AutoZone Inc. (AZO - Free Report) reported earnings of $31.04 per share for the first quarter of fiscal 2026 (ended Nov. 22, 2025), which missed the Zacks Consensus Estimate of $32.24. The company reported earnings of $32.52 per share in the corresponding quarter of fiscal 2025. Net sales grew 8.2% year over year to $4.63 billion but marginally lagged the Zacks Consensus Estimate of $4.64 billion.
Advance Auto Parts (AAP - Free Report) reported third-quarter 2025 adjusted earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The company incurred an adjusted loss of 4 cents per share in the year-ago quarter. Advance Auto generated net revenues were $2.04 billion, which beat the Zacks Consensus Estimate of $2 billion. Comparable store sales increased 3% year over year and we expected a rise of 2.4% for the same. The top line, however, decreased from $2.15 billion generated in the year-ago quarter.
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CarMax Q3 Earnings Surpass Expectations, Revenues Decline Y/Y
Key Takeaways
CarMax Inc. (KMX - Free Report) reported third-quarter fiscal 2026 (ended Nov. 30, 2025) adjusted earnings per share of 51 cents, which beat the Zacks Consensus Estimate of 32 cents. The bottom line fell from 81 cents recorded in the year-ago period. Revenues totaled $5.8 billion, which exceeded the Zacks Consensus Estimate of $5.7 billion, though sales fell 6.9% year over year.
KMX currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 $4.54 billion for the reported quarter, down 7% year over year due to a decline in unit sales. The units sold in this segment declined 8% year over year to 169,557 vehicles and fell short of our forecast of 191,402 units. The average selling price (ASP) of used vehicles increased 0.9% from the year-ago quarter’s level to $26,383, which surpassed our projection of $25,578. Amid lower-than-expected units sold, revenues from the segment missed our estimate of $4.90 billion.
Comparable store used-vehicle units decreased 9% and revenues fell 8.1% from the prior-year level. Used-vehicle gross profit per unit (GPU) was $2,235, which fell from the prior-year quarter’s $2,306 but surpassed our estimate of $1,978.2.
For the fiscal third quarter, wholesale vehicle revenues decreased 6.3% from the year-ago level to $1,095.1 million. The reported figure was above our projection of $1,069.4 million. Units sold fell 6.2% to 127,603 (versus our forecast of 139,339) and the ASP declined 0.5% year over year to $8,137 (versus our estimate of $7,675). Wholesale vehicle GPU was $899, which fell from the year-ago period’s $1,015 but topped our estimate of $840.6.
Other sales and revenues decreased 9.2% year over year to $150.6 million but missed our estimate of $170.3 million. CarMax Auto Finance’s income rose 9.3% year over year to $174.7 million at the end of the fiscal third quarter.
Other Tidbits
Selling, general and administrative expenses increased 1% from the prior-year quarter’s level to $581.4 million. The firm had cash/cash equivalents and long-term debt of $204.9 million and $1.17 billion, respectively, as of Nov. 30, 2025.
During the fiscal third quarter, CarMax repurchased shares worth $201.6 million. As of Nov. 30, 2025, it had $1.36 billion remaining under the share repurchase authorization.
Earnings Releases of Other Auto Stocks
THOR Industries, Inc. (THO - Free Report) reported earnings of 41 cents per share for the first quarter of fiscal 2026 (ended Oct. 31), which topped the Zacks Consensus Estimate of a loss of 11 cents. The company reported earnings of 26 cents per share in the corresponding quarter of fiscal 2025. THOR registered revenues of $2.39 billion for the fiscal first quarter, which beat the Zacks Consensus Estimate of $2.12 billion. The top line rose 11.5% year over year.
AutoZone Inc. (AZO - Free Report) reported earnings of $31.04 per share for the first quarter of fiscal 2026 (ended Nov. 22, 2025), which missed the Zacks Consensus Estimate of $32.24. The company reported earnings of $32.52 per share in the corresponding quarter of fiscal 2025. Net sales grew 8.2% year over year to $4.63 billion but marginally lagged the Zacks Consensus Estimate of $4.64 billion.
Advance Auto Parts (AAP - Free Report) reported third-quarter 2025 adjusted earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The company incurred an adjusted loss of 4 cents per share in the year-ago quarter. Advance Auto generated net revenues were $2.04 billion, which beat the Zacks Consensus Estimate of $2 billion. Comparable store sales increased 3% year over year and we expected a rise of 2.4% for the same. The top line, however, decreased from $2.15 billion generated in the year-ago quarter.