CarMax Q3 Earnings Surpass Expectations, Revenues Decline Y/Y

CarMax Inc. KMX 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. QuoteSegmental PerformanceCarMax’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 TidbitsSelling, 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 StocksTHOR Industries, Inc. THO 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 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 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.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Thor Industries, Inc. (THO): Free Stock Analysis Report Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report CarMax, Inc. (KMX): 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