Shares of CarMax (NYSE: KMX) fell 17% in regular trading Thursday after the used car retailer reported fourth-quarter earnings that missed analyst expectations, even as revenue and unit sales came in slightly ahead of forecasts.
For the fourth quarter of FY 2025, CarMax posted earnings per share of $0.58, falling short of Wall Street’s consensus estimate by $0.07. Revenue for the quarter reached $6 billion, topping expectations of $5.93 billion.
Despite the earnings miss, management emphasized continued momentum across the business, pointing to growth in unit sales, gross profit, and its auto finance segment as key performance drivers.
Used vehicle revenue totaled $4.84 billion, up 7.5% year-over-year and slightly ahead of the $4.81 billion consensus. Wholesale vehicle sales rose 3.5% to $1.01 billion, just below expectations of $1.03 billion.
In the fiscal year 2026, CarMax (NYSE: KMX) said it expects a low-single-digit gross profit growth to support operating leverage in SG&A. The company also estimated capital expenditures of approximately $575 million for the year.
The stock’s decline reflects investor disappointment with the bottom-line miss despite signs of operational strength and strategic cost management heading into the new fiscal year.
The company’s shares are down more than 18% since the start of the year.
