Overview
- CarMax reported third-quarter earnings of $0.43 per share on net income of $62.2 million, with revenue down 6.9% year over year to $5.79 billion.
- The results exceeded Benzinga Pro consensus estimates of $0.32 in EPS and $5.63 billion in revenue, though both metrics declined from a year earlier.
- Management pointed to a slowdown in used-vehicle demand and lower prices following a tariff-driven surge earlier this year that left the company reselling higher-cost inventory.
- The company said it will lower retail margins and increase marketing in the current quarter to help counter softer demand.
- CarMax reduced its workforce during the quarter and remains on track to cut at least $150 million in SG&A by fiscal 2027, after announcing CEO Bill Nash will step down and naming David McCreight interim chief.