CarMax Inc. KMX reported fourth-quarter fiscal 2025 (ended Feb. 28, 2025) adjusted earnings per share of 64 cents, which came in line with the Zacks Consensus Estimate. The bottom line rose from 32 cents per share recorded in the year-ago period. The auto retailer registered revenues of $6 billion in the quarter under review, which surpassed the Zacks Consensus Estimate of $5.99 billion. The top line also rose 6.7% year over year. 

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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 $4.84 billion for the reported quarter, up 7.5% year over year, owing to a rise in unit sales. The units sold in this segment rose 6.2% year over year to 182,655 vehicles and topped our forecast of 177,228 units. The average selling price (ASP) of used vehicles increased 0.6% from the year-ago quarter to $26,133 and topped our projection of $25,825. Amid higher-than-expected units sold and ASP, revenues from the segment surpassed our estimate of $4.58 billion. 

Comparable store used-vehicle units increased 5.1% and revenues rose 5.9% from the prior-year level. Used-vehicle gross profit per unit (GPU) came in at $2,322, which increased from the prior-year quarter’s $2,251 but lagged our estimate of $2,276.6. 

For the fiscal fourth quarter, wholesale vehicle revenues increased 3.5% from the year-ago level to $1 billion. The reported figure was above our projection of $982.6 million due to higher-than-anticipated ASP. Units sold rose 3.1% to 119,156 (versus our forecast of 123,457) and the ASP rose 0.1% to $8,044 (versus our estimate of $7,959). Wholesale vehicle GPU came in at $1,045, which fell from the year-ago period’s $1,120 but topped our estimate of $906.3. 

Other sales and revenues increased 2.7% year over year to $159 million but missed our estimate of $168.5 million. CarMax Auto Finance income rose 8.2% year over year to $159.3 million at the end of the fiscal fourth quarter. 

Other Tidbits

Selling, general and administrative expenses increased 5% from the prior-year quarter to $610.5 million. The firm had cash/cash equivalents and long-term debt of $246.9 million and $1.57 billion, respectively, as of Feb. 28, 2025. 

During the fiscal fourth quarter, CarMax repurchased shares worth $98.5 million. As of Feb. 28, 2025, it had $1.94 billion remaining under the share repurchase authorization. 

Fiscal 2026 Guidance

For fiscal 2026, the company is planning to open six new store locations, along with four stand-alone reconditioning and auction centers. Capital expenditures for the year are expected to be approximately $575 million, up from $467.9 million in fiscal 2025. 

KMX’s Zacks Rank & Key Picks

CarMax carries a Zacks Rank #3 (Hold) at present. 

Some better-ranked stocks in the auto space are China Yuchai International Limited CYD, Michelin MGDDY and Strattec Security Corporation STRT, 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 CYD’s 2025 sales and earnings indicates year-over-year growth of 9.17% and 36.84%, respectively. EPS estimates for 2025 have improved 25 cents in the past 60 days.  

The Zacks Consensus Estimate for MGDDY’s 2025 earnings implies year-over-year growth of 40.56%. EPS estimates for 2025 and 2026 have improved 27 cents and 18 cents, respectively, in the past 60 days. 

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 60 days. 

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