CarMax Reports First Revenue Growth in Over Two Years, Surpassing Q3 Expectations

The used-car retailer saw a 56% surge in earnings and a 1% rise in revenue, signaling a potential rebound in the used-car market.

CarMax posted third-quarter earnings of 81 cents per share, significantly exceeding analysts' expectations of 62 cents per share.
Revenue grew 1% to $6.22 billion, marking the first quarterly increase in over two years and beating forecasts of $6.04 billion.
Same-store sales rose 4.3%, while total retail and wholesale vehicle sales increased by 5.4% and 6.3%, respectively, compared to the prior year.
CarMax Auto Finance reported a 7.6% increase in income, driven by improved net interest margins and tighter underwriting standards.
CarMax shares rose over 4% following the earnings report, reflecting investor optimism about the company’s strengthening position in a stabilizing used-car market.