CarMax Q4 revenue beats on higher wholesale unit volume

Carmax

14/04/2026 12:02

Overview

U.S. used auto retailer's Q4 revenue rose and beat analyst expectations

Company reported a Q4 net loss due to goodwill impairment and restructuring charges

Company repurchased $50.4 mln in shares before pausing buyback program

Outlook

CarMax increases targeted SG&A reductions to $200 mln in exit rate savings by end-FY2027

Company expects FY2027 capital expenditures of about $400 mln

CarMax plans to open four new stores and four reconditioning/auction centers in FY2027

Result Drivers

PRICING ACTIONS - Lower retail used vehicle gross profit per unit driven by pricing actions to support sales trend

WHOLESALE MIX - Higher wholesale unit volume partially offset by lower average selling prices and gross profit per unit

FINANCE INCOME DECLINE - CarMax Auto Finance income fell due to lower auto loans outstanding and higher loan loss provisions from expanded credit spectrum

Company press release: ID:nBw2lK3lsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$5.95 bln
$5.70 bln (13 Analysts)
Q4 Adjusted EPS
Beat
$0.34
$0.21 (15 Analysts)
Q4 EPS
-$0.85
Q4 Gross Profit
$605.30 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 2 "sell" or "strong sell"

Wall Street's median 12-month price target for Carmax Inc is $36.50, about 25.6% below its April 13 closing price of $49.08

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)