CarMax Reports Strong EPS Growth Amidst Record Vehicle Buys

In a recent report, CarMax showcased impressive financial metrics for Q3 2025, including significant growth in earnings per share and total sales. The company's strong performance in vehicle sourcing and retail unit sales indicates a robust positioning within the used car market.

Date: 20-12-2024

AI Rating: 7

Earnings Per Share (EPS): CarMax reported an EPS of $0.81, reflecting a strong 56% growth compared to the previous year. This remarkable increase is a key indicator of the company’s profitability and efficiency in managing its operations, positively impacting its stock price and investor sentiment.

Total Revenue: The total sales for the third quarter reached $6.2 billion, a modest increase of 1% compared to last year, which underscores a stable revenue stream in a competitive environment. While the growth is not substantial, any increase in revenue is generally viewed as a positive sign for investors.

Net Income: The significant EPS growth suggests corresponding increases in net income, reinforcing investor confidence in the company's financial health.

Gross Profit: Third-quarter total gross profit was reported at $678 million, which was an 11% increase from last year's figure. This growth signals effective cost management and leverage in achieving higher profit margins.

Retail and Wholesale Performance: Retail gross profit per used vehicle remained stable year-over-year, while wholesale gross profit per unit increased, indicating strong demand in both segments.

Overall, CarMax’s results reflect a solid operational foundation and opportunities for sustained growth. The notable EPS performance can drive stock prices upward as investor confidence builds with solid fundamentals and positive trends in vehicle pricing and sales.

Stocks: KMX