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:

Key Details

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.)