CarMax reported an EPS of $0.58, missing the estimated $0.63 but achieved revenue of $6.003 billion, surpassing expectations.
The company’s stock rose by 8.87% year-over-year, indicating investor confidence despite short-term challenges.
CarMax’s debt-to-equity ratio stands at approximately 2.84, with a current ratio of about 2.30, showcasing its financial stability.
CarMax, Inc. (NYSE:KMX) is a leading retailer of used cars in the United States. The company operates through two segments: CarMax Sales Operations and CarMax Auto Finance. It offers a wide range of vehicles and related products and services, including financing options. CarMax competes with other used car retailers like AutoNation and Carvana.
On April 10, 2025, CarMax reported its fiscal fourth-quarter earnings, revealing an earnings per share (EPS) of $0.58. This figure fell short of the estimated $0.63, as highlighted by Barrons. Despite this, CarMax’s revenue reached $6.003 billion, surpassing the expected $5.980 billion. This indicates strong sales performance despite the earnings miss.
The company’s earnings fell short of Wall Street’s expectations, with analysts anticipating an EPS of $0.66. CarMax attributed this shortfall to higher borrowing costs, which have deterred some consumers from making significant purchases. This has contributed to a decline in the stock following the earnings report.
Despite the earnings miss, CarMax experienced substantial year-over-year growth in earnings. The stock saw a significant increase, with shares rising by 8.87%. This suggests that investors remain optimistic about the company’s long-term prospects, despite the short-term challenges.
CarMax’s financial health is reflected in its debt-to-equity ratio of approximately 2.84, indicating it has more than twice as much debt as equity. However, the company’s current ratio of about 2.30 suggests a strong ability to cover its short-term liabilities with its short-term assets, providing a cushion against financial uncertainties.