CarMax Q2 revenue rises on higher wholesale and retail used vehicles sales; plans to resume buyback
CarMax Q2 revenue rises on higher wholesale and retail used vehicles sales; plans to resume buyback
Overview
US used auto retailer's fiscal Q2 revenue rose 19.5% yr/yr to $7.9 bln
Net earnings per share increased 81% to $1.16 in fiscal Q2
Company plans to resume share repurchases in Q3 FY27
Outlook
CarMax plans to resume share repurchases in Q3 FY 2027
Company remains on track to achieve $200 mln in SG&A exit rate savings by end of FY 2027
CarMax to provide strategic update on growth initiatives on Nov 3
Result Drivers
UNIT SALES GROWTH - Higher retail and wholesale used vehicle unit sales drove revenue increases
COMPETITIVE PRICING - Pricing actions supported improved sales trends but reduced gross profit per unit
FINANCE INCOME - CarMax Auto Finance income rose due to lower loan loss provision and gains on loan sales
Company press release: ID:nBw6YY9S7a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $7.88 bln |
|
Q2 EPS |
| $1.16 |
|
Q2 Gross Profit |
| $799.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."
Wall Street's median 12-month price target for Carmax Inc is $53.50, about 5.4% below its September 28 closing price of $56.55
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)