CarMax Q3 revenue, EPS beat expectations

Carmax

18/12/2025 12:02

Overview

Used car retailer's Q3 revenue and EPS beat analyst expectations

Company repurchased $201.6 mln in shares of common stock in Q3

Outlook

CarMax plans to lower retail used unit margins in the fourth quarter

Company expects increased marketing spend on a total unit basis year-over-year in the fourth quarter

Result Drivers

RETAIL SALES DECLINE - Retail used unit sales decreased 8.0% and comparable store sales declined 9.0%, impacted by market depreciation

WHOLESALE IMPACT - Wholesale units decreased 6.2% with gross profit per unit down $116, affected by steep market depreciation

CAF INCOME GROWTH - CarMax Auto Finance income rose 9.3% due to a gain on sale of auto loans despite lower interest margin dollars

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$5.79 bln
$5.64 bln (15 Analysts)
Q3 EPS
Beat
$0.43
$0.38 (16 Analysts)
Q3 Gross Profit
$590 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 3 "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 $35.00, about 14.8% below its December 17 closing price of $41.07

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw1wgmyga

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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.)