CarMax (KMX) Earnings Date & Reports

CarMax delivered mixed but beat-driven results for Q4 fiscal 2026. Total net sales and operating revenues hit $5.95 billion, exceeding consensus by about 3-5% but down 1.0% YoY from $6.01 billion, reflecting softer retail demand offset by wholesale strength.

Adjusted net EPS was $0.34, topping estimates of $0.18-$0.22 (Zacks/Yahoo), down from $0.64 YoY. GAAP EPS showed a loss of $0.85 due to a $141.3 million goodwill impairment (non-cash, tied to market cap decline and outlook revisions) and $33.9 million restructuring charges.

Key metrics: Retail used units at 181,188 (-0.8% YoY), comps -1.9%; wholesale units 122,781 (+3.0%). Gross profit per retail used unit fell to $2,115 (-$207), margin 8.0%; wholesale $940 (-$105), 11.5%. SG&A was $611.3 million (flat YoY, 10.3% of sales); adjusted down 5.4%. CAF income $143.7 million (-9.8%), with provisions up on non-prime growth. No formal Q1 guidance, but noted pricing actions improved sequential trends.

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Market Reaction and Investor Sentiment

Despite beating EPS and revenue estimates, CarMax shares plunged 15.2% on April 14, closing at $41.66 from $49.08 the prior day—the largest single-day drop in recent history. Early trading saw declines of 6-15%, driven by YoY sales/profit drops, margin compression, impairment charges, and lack of upbeat guidance amid used car market headwinds. Sentiment turned cautious, with focus shifting to restructuring (corporate workforce cuts) and paused buybacks ($1.31 billion remaining), overshadowing operational beats like wholesale gains and sequential unit improvements.

Forward Outlook and Key Factors to Monitor

CarMax enters fiscal 2027 with a new CEO, Keith Barr (effective March 16, 2026), emphasizing competitive pricing, digital enhancements, and customer experience to regain sales momentum. Management highlighted pricing actions driving sequential unit improvements in Q4, positioning for volume growth in a stabilizing used vehicle market.

Cost controls are a priority: Targeted SG&A reductions raised to $200 million exit-rate savings by FY2027 end (from $150 million), via workforce optimization and efficiency. Adjusted SG&A expected to lever per total unit (retail + wholesale). Capex set at ~$400 million, funding 4 new stores, 2 reconditioning/auction centers, and 2 auction facilities to boost capacity.

CAF remains key: Expansion into non-prime lending lifts penetration to 42.8% but pressures near-term provisions ($73.9 million in Q4); long-term profitability expected via higher margins. EPP (Extended Protection Plans) redesign rollout to add ~$35/unit in FY2027. Share repurchases paused, pending capital needs.

Watch Q1 FY2027 results (ending May 31, 2026, report ~June 17): unit trends, used margins (expected FY2027 decline in line with Q4 YoY), wholesale dynamics, consumer buying (270k vehicles in Q4, +0.4%), and industry affordability signals. Broader auto demand, rates, and inventory levels will shape recovery.

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