Loading...
12/20 16:22
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate strong financial performance with year-over-year growth in revenue, gross profit, and unit sales. Despite some concerns over tariff impacts and macroeconomic uncertainties, management remains optimistic about future growth, supported by strategic initiatives like AI-powered tools and improved customer experience. The company's robust financial health, coupled with a significant share repurchase authorization, suggests a positive outlook. While some uncertainties exist, the overall sentiment leans positive, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
EPS $0.64, up 81% year-over-year, adjusted for a $12 million non-cash impairment.
Total Sales $6 billion, up 7% year-over-year, primarily driven by higher volume.
Retail Gross Profit per Used Unit $2,322, up from $2,251 year-over-year.
Wholesale Gross Profit per Unit $1,045, down from $1,120 year-over-year.
Total Gross Profit $668 million, up 14% year-over-year.
Used Retail Margin $424 million, up 9% year-over-year, driven by higher volume and per unit margins.
CAF Income $159 million, up 8% year-over-year, driven by net interest margin.
SG&A Expenses $611 million, up 5% year-over-year, impacted by increased compensation and advertising.
Vehicles Purchased 269,000 vehicles, up 15% year-over-year.
Retail Unit Sales Growth 6.2% increase year-over-year.
Wholesale Unit Sales Growth 3.1% increase year-over-year.
Average Selling Price (Retail) Flat year-over-year.
Average Selling Price (Wholesale) Flat year-over-year.
Service Gross Profit $119 million, up 72% year-over-year, driven by EPP and service improvements.
Service Loss $1 million loss, improved by $44 million year-over-year.
New Product Enhancements: Testing EPP product enhancements to increase penetration and per unit margins.
AI-Powered Virtual Assistant: Sky, the AI-powered virtual assistant, can now independently answer over half of customer inquiries, reflecting a 20% year-over-year improvement.
Online Vehicle Transfer Experience: Plans to improve the online vehicle transfer experience.
Market Share: Nationwide share of age zero to 10-year-old used vehicles was 3.7% in calendar 2024, consistent with 2023.
Retail Unit Sales Growth: Retail unit sales increased by 6.2% in Q4 FY '25.
Omni-Channel Sales Growth: Approximately 67% of retail unit sales were omni this quarter, up from 64% last year.
Operational Efficiencies: Achieved savings of approximately $125 per unit in fiscal 2025, with expectations for another $125 per unit in fiscal 2026.
Cost of Goods Sold: Focus on driving down cost of goods sold through efficiency opportunities across logistics and reconditioning operations.
Expansion Plans: Plans to open six new store locations and four stand-alone reconditioning and auction centers in FY '26.
Credit Spectrum Expansion: Continued expansion of CAF's participation across the credit spectrum to grow penetration and capture profitable returns.
Competitive Pressures: The company acknowledges that its market share came under pressure during the first half of 2024 but recovered in the second half, indicating ongoing competitive challenges in the used car market.
Regulatory Issues: The company mentions the need to monitor the consumer and broader economy, suggesting potential regulatory challenges that could impact lending practices and overall business operations.
Supply Chain Challenges: CarMax faced challenges related to inclement weather and a delayed start to the tax season, which affected retail unit sales despite overall growth.
Economic Factors: The company is cautious about broader macroeconomic factors that could impact its long-term goals, indicating potential risks related to economic downturns or shifts in consumer behavior.
Credit Tightening: The company has implemented credit tightening measures, which could affect loan origination volumes and overall sales, particularly in the auto finance segment.
Loan Loss Provisions: The forecast for a larger provision for loan losses in the first quarter indicates potential risks associated with credit quality and the nature of recaptured receivables.
Digital Capabilities: CarMax plans to enhance digital tools and experiences, including improving online vehicle transfer and expanding appraisal pickup availability.
Credit Spectrum Expansion: CarMax Auto Finance (CAF) aims to continue expanding participation across the credit spectrum to grow penetration and capture profitable returns.
Operational Efficiencies: CarMax achieved savings of approximately $125 per unit in fiscal 2025 and anticipates achieving at least another $125 per unit in fiscal 2026.
New Store Openings: In FY ‘26, CarMax plans to open six new store locations and four stand-alone reconditioning and auction centers.
Marketing Campaign: A new marketing campaign will be launched to highlight CarMax's omnichannel experience and digital capabilities.
EPS Growth: CarMax expects double-digit EPS growth for years to come, with a CAGR in the high-teens when retail unit growth is in the mid-single-digits.
CapEx for FY '26: CarMax anticipates approximately $575 million in capital expenditures for FY '26, primarily for land purchases and facility build-outs.
SG&A Leverage: CarMax aims for low-single-digit gross profit growth to leverage SG&A on an annual basis, targeting full-year omni-cost neutrality in FY '26.
Retail Unit Sales Growth: CarMax is positioned to achieve ongoing growth in retail and wholesale unit sales and market share.
Service Margin Growth: Service margin is expected to grow year-over-year in FY '26, contributing positively to profits.
Share Repurchase Program: During the fourth quarter, CarMax repurchased approximately 1.2 million shares for a total spend of $99 million. As of the end of the quarter, there was approximately $1.94 billion of repurchase authorization remaining.
The earnings call summary reveals strong financial performance expectations, optimistic guidance, and strategic initiatives, particularly in cost reductions and marketing. The Q&A section supports this sentiment, highlighting management's focus on competitive pricing, digital transformation, and strategic adjustments to drive sales. Despite some vague responses, the overall tone is positive, especially with the emphasis on SG&A reductions and market strategy improvements. The positive sentiment is further reinforced by optimistic guidance and strategic focus on growth opportunities, suggesting a likely positive stock price movement over the next two weeks.
The earnings call summary reveals a decline in key financial metrics such as EPS and total gross profit, coupled with a decrease in CAF income expectations. The Q&A section highlights challenges in used unit sales, competitive pricing issues, and flat or declining CAF income. Although cost reductions are planned, they are not expected to impact growth. The negative sentiment from analysts, along with unclear management responses, further supports a negative outlook.
The earnings call summary shows strong financial performance with a 12% increase in net sales, a 42% rise in EPS, and significant share repurchases. The Q&A highlights a positive outlook on business acceleration and cost management, despite some vagueness in responses about comp growth and macro impacts. The company's strategic focus on digital sales, cost efficiency, and market expansion supports a positive sentiment. However, the lack of clear guidance on certain financial metrics tempers the enthusiasm slightly, leading to an overall positive sentiment.
The earnings call summary and Q&A indicate strong financial performance with year-over-year growth in revenue, gross profit, and unit sales. Despite some concerns over tariff impacts and macroeconomic uncertainties, management remains optimistic about future growth, supported by strategic initiatives like AI-powered tools and improved customer experience. The company's robust financial health, coupled with a significant share repurchase authorization, suggests a positive outlook. While some uncertainties exist, the overall sentiment leans positive, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
