Refile: Used car retailer CarMax's Q2 revenue, EPS miss estimates

Carmax

25/09/2025 12:02

Corrects syntax in headline

Overview

CarMax Q2 revenue fell 6% yr/yr to $6.59 bln, missing analyst expectations

Adjusted EPS for Q2 was $0.64, below analyst estimates of $1.05

Retail used unit sales decreased 5.4%, comparable store sales down 6.3%

Outlook

Company targets $150 mln SG&A reductions over next 18 months

Company anticipates $40-45 mln additional CAF income from servicing fees

Result Drivers

RETAIL SALES DECLINE - Retail used unit sales decreased by 5.4%, driven by lower consumer demand

WHOLESALE SALES DROP - Wholesale units decreased by 2.2%, reflecting reduced vehicle acquisitions

FINANCE INCOME FALLS - CarMax Auto Finance income dropped 11.2% due to higher loan loss provisions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$6.59 bln
$7.02 bln (14 Analysts)
Q2 EPS
Miss
$0.64
$1.05 (13 Analysts)
Q2 Gross Profit
$717.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 5 "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 $80.00, about 28.7% above its September 24 closing price of $57.05

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw70yDSYa

 (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.)