Key Moments
- CarMax first-quarter revenue increased 6.2% to $8.01 billion, topping the $7.4 billion analyst estimate.
- Average used-vehicle prices rose 4.5% year over year to $27,288, supporting overall revenue growth.
- First-quarter profit declined to $185.6 million, or $1.31 per share, from $210.4 million, or $1.38 per share, a year earlier.
Revenue Outpaces Expectations
CarMax Inc reported first-quarter revenue that exceeded Wall Street expectations, supported by higher used-vehicle prices and resilient demand in its wholesale operations.
Total revenue for the quarter rose 6.2% to $8.01 billion from the same period a year earlier, surpassing the average analyst estimate of $7.4 billion, based on data compiled by LSEG.
Following the announcement, shares of the Richmond, Virginia-based retailer advanced more than 5% in premarket trading.
Pricing and Margin Dynamics
The used-car industry has been facing pressure on profitability as affordability issues weigh on retail buyers. At the same time, higher U.S. tariffs have driven up new-vehicle prices, which is expected to channel more customers toward pre-owned vehicles.
CarMax’s retail gross profit per used vehicle declined to $2,177 in the quarter, compared with $2,407 in the prior-year period. Wholesale profitability per unit was largely unchanged, coming in at $1,046 versus $1,047 a year earlier.
Despite the margin pressure, average used-vehicle prices climbed 4.5% year over year to $27,288 during the quarter.
| Metric | Current Quarter | Year-Ago Quarter |
|---|---|---|
| Revenue | $8.01 billion | Not specified |
| Analyst revenue estimate (LSEG) | $7.4 billion | Not applicable |
| Retail gross profit per used vehicle | $2,177 | $2,407 |
| Wholesale gross profit per unit | $1,046 | $1,047 |
| Average used-vehicle price | $27,288 | 4.5% lower than current |
| Net income | $185.6 million | $210.4 million |
| Earnings per share | $1.31 | $1.38 |
Profitability Trends
Despite the revenue beat, CarMax’s bottom line moved lower compared with the prior year. First-quarter profit totaled $185.6 million, or $1.31 per share, down from $210.4 million, or $1.38 per share, a year earlier.
The combination of softer retail margins and only marginal changes in wholesale unit profitability, alongside rising vehicle prices, framed the company’s quarterly performance.
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