The chart below shows how KMX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KMX sees a +2.04% change in stock price 10 days leading up to the earnings, and a -3.15% change 10 days following the report. On the earnings day itself, the stock moves by -0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Performance Update: In the third quarter of fiscal year 2025, CarMax reported total sales of $6.2 billion, up 1% compared to last year, reflecting higher volume partially offset by lower prices.
Retail Unit Sales Growth: Retail unit sales increased by 5.4% year-over-year, with used unit comps up 4.3%.
Wholesale Sales Increase: Wholesale unit sales were up 6.3% versus the third quarter last year, indicating strong demand in the wholesale market.
CAF Income Growth: CarMax Auto Finance (CAF) delivered income of $160 million, up 8% from the same quarter last year, driven by improved net interest margin.
EPS Growth Achievement: The company achieved double-digit EPS growth, reflecting robust execution and cost management strategies.
Negative
Sales Growth Analysis: Total sales increased by only 1% to $6.2 billion compared to last year, reflecting lower prices that offset higher volume.
Average Selling Price Decline: Average selling price declined approximately $1,100 per unit or 4% year-over-year, indicating pricing pressure in the market.
Minimal Profitability Improvement: Retail gross profit per used unit was $2,306, which is only slightly above last year's $2,277, showing minimal improvement in profitability.
Loan Loss Provision Increase: Provision for loan losses was $73 million, up from last year's $68 million, indicating increased risk in the lending portfolio.
SG&A Expense Increase: SG&A expenses increased by 3% to $576 million, driven by higher compensation and benefits, which could impact overall profitability.
CarMax, Inc. (KMX) Q3 2025 Earnings Call Transcript
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