CarMax (NYSE:KMX) shares dropped over 6% in pre-market today despite the used vehicle retailer reporting stronger-than-expected revenue for fiscal Q2 2025.
The company posted quarterly earnings per share (EPS) of $0.85, aligning with analyst expectations. Net sales and operating revenue reached $7.01 billion, surpassing the Street estimate of $6.82 billion.
Used vehicle sales totaled $5.68 billion, marking a 1.5% year-over-year increase and beating the projected $5.44 billion. However, wholesale vehicle sales fell 13% year-over-year to $1.15 billion, slightly below the expected $1.2 billion.
CarMax President and CEO Bill Nash highlighted the company’s ability to grow retail used unit sales, maintain strong margins, manage SG&A expenses, and achieve double-digit earnings growth, despite challenges from industry-wide auto loan loss pressures.
At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com