CarMax Earnings
CarMax, Inc. has reported its financial results for the third quarter ending November 30, 2024, showcasing a sturdy financial performance amidst a dynamic automotive market. The earnings report reveals significant growth in key metrics, underpinned by strategic initiatives and operational efficiency.
Key Financial Metrics
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Gross Profit | $677.6 million | N/A | 10.6% increase |
| Net Earnings per Diluted Share | $0.81 | $0.52 | 55.8% increase |
CarMax has achieved a substantial 55.8% increase in net earnings per diluted share, primarily driven by an uptick in unit sales and robust unit margin performance. Gross profit surged by 10.6%, reflecting effective cost control and operational resilience.
CarMax Results
CarMax has demonstrated remarkable performance in Q3 2025, with impressive year-over-year growth in financial metrics. The gross profit reached $677.6 million, showcasing a 10.6% growth, while earnings per share ascended to $0.81 from $0.52, a 55.8% improvement.
This growth trajectory can be attributed to increased sales volumes across the board and adept margin management. The profitability surge indicates CarMax's strategic effectiveness in capturing market opportunities and enhancing operational scalability.
Revenue Breakdown
CarMax has thrived on multiple fronts, as evidenced by the sales increases across major segments.
Revenue Performance by Segment
| Segment | Q3 2025 Sales | Change from Q3 2024 |
|---|---|---|
| Retail Used Units Sales | 184,243 | 5.4% increase |
| Wholesale Units Sales | 136,013 | 6.3% increase |
| Vehicles Acquired from Consumers | 237,000 | 4.1% increase |
| Vehicles Acquired from Dealers | 33,000 | 46.7% increase |
Retail used vehicle sales saw a 5.4% increase, aligning with the uptick in comparable store sales by 4.3%. The wholesale segment flourished with a 6.3% rise in sales, demonstrating CarMax's effective procurement strategy and operational prowess. Notably, vehicles acquired from dealers surged by an eye-catching 46.7%, illustrating a tactical emphasis on supply chain optimization and strategic partnerships.
Key Developments
In Q3 2025, CarMax has made noteworthy progress in several operational dimensions:
- Share repurchases totaled $114.8 million, emphasizing shareholder value enhancement.
- A new store was inaugurated in Alliance, Texas, expanding CarMax's geographic footprint and market access.
- The Extended Protection Plans' margin per retail unit increased by $53, underscoring financial services' growing contribution to margins.
These developments underscore CarMax's commitment to strategic growth and operational excellence. By investing in retail expansion and leveraging financial products, CarMax continues to solidify its position in the automotive retail landscape.
Comments from Company Officers
CEO Bill Nash reflected positively on the quarter's results, attributing success to CarMax's diverse business model and a stable vehicle valuation environment, which together fueled growth in unit sales, margins, and CarMax Auto Finance income. Nash highlighted the importance of associates and omni-channel experiences, indicating a strategic push to grow in the largest addressable market within the industry.
Dividends and Share Repurchases
While CarMax has not declared dividends, the company has demonstrated a strong commitment to share repurchases. In Q3 2025, it repurchased 1.5 million shares valued at $114.8 million, with $2.04 billion remaining under the current buyback authorization. This ongoing repurchase signals CarMax's prioritization of shareholder returns and confidence in its growth prospects.
CarMax Stock Forecast
Reflecting on the comprehensive financial performance and strategic developments, CarMax's stock is well-positioned for further growth. Following the earnings release, CarMax experienced a 1.45% increase in stock price. Given the current $84.91 stock price and market capitalization of $11.47 billion, stock projections look promising.
- High Projection : $95.00, driven by sustained revenue growth, operational expansions, and strong buyback activity.
- Low Projection : $80.00, accounting for potential fluctuations in the automotive market and economic conditions.
CarMax's solid Q3 2025 performance and robust strategic initiatives lay the ground for upward momentum in stock value, making it an attractive prospect for investors eyeing growth in the automotive retail sector.
