CarMax Q2 revenue rises on higher wholesale and retail used vehicles sales; plans to resume buyback

By Reuters News


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

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


Reuters Recommended Reads

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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.)

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