CarMax Q1 Earnings Surpass Expectations, Revenues Increase Y/Y

CarMax Inc. KMX reported first-quarter fiscal 2026 (ended May 31, 2025) adjusted earnings per share of $1.38, which beat the Zacks Consensus Estimate of $1.18. The bottom line rose from 97 cents per share recorded in the year-ago period. The auto retailer registered revenues of $7.55 billion in the quarter under review, which surpassed the Zacks Consensus Estimate of $7.52 billion. The top line also rose 6% year over year.CarMax, Inc. Price, Consensus and EPS Surprise CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. QuoteSegmental PerformanceCarMax’s used-vehicle net sales totaled $6.1 billion for the reported quarter, up 7.5% year over year due to a rise in unit sales. The units sold in this segment rose 9% year over year to 230,210 vehicles and topped our forecast of 207,124 units. The average selling price (ASP) of used vehicles decreased 1.5% from the year-ago quarter to $26,120, which lagged our projection of $28,279. Amid higher-than-expected units sold, revenues from the segment surpassed our estimate of $5.86 billion. Comparable store used-vehicle units increased 8.1% and revenues rose 6.6% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,407, which increased from the prior-year quarter’s $2,347 but lagged our estimate of $2,376.8. For the fiscal first quarter, wholesale vehicle revenues decreased 0.3% from the year-ago level to $1.25 billion. The reported figure was below our projection of $1.27 million due to lower-than-anticipated ASP. Units sold rose 1.2% to 149,517 (versus our forecast of 145,645) and the ASP fell 1.7% to $7,959 (versus our estimate of $8,717). Wholesale vehicle GPU came in at $1,047, which fell from the year-ago period’s $1,064 but topped our estimate of $1,033.3. Other sales and revenues increased 6.1% year over year to $190.4 million but missed our estimate of $196.2 million. CarMax Auto Finance’s income fell 3.6% year over year to $141.7 million at the end of the fiscal first quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Other TidbitsSelling, general and administrative expenses increased 3.3% from the prior-year quarter to $659.6 million. The firm had cash/cash equivalents and long-term debt of $262.8 million and $1.37 billion, respectively, as of May 31, 2025. During the fiscal first quarter, CarMax repurchased shares worth $199.8 million. As of May 31, 2025, it had $1.74 billion remaining under the share repurchase authorization.KMX’s Zacks Rank & Key PicksCarMax carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, 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 CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 44 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and $1.61, respectively, in the past 60 days.The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 1.69% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved by a penny and seven cents, respectively, in the past 30 days. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Michelin (MGDDY): Free Stock Analysis Report CarGurus, Inc. (CARG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks