Overview

• CarMax reported Q4 earnings per share of $0.58, missing analyst expectations of $0.66, with used-vehicle sales also falling short at 301,811 units versus a forecast of 312,800.
• The company suspended its timelines for long-term growth targets, citing uncertainties from tariffs and broader macroeconomic factors.
• CarMax's stock dropped approximately 17% by market close, marking one of its steepest single-day losses since the COVID-19 pandemic.
• Tariffs on automotive imports, particularly those proposed by the Trump administration, are driving up costs, impacting affordability, and shifting consumer demand toward used vehicles.
• In response to market shifts, CarMax is expanding its inventory of newer pre-owned vehicles priced under $20,000 to attract budget-conscious buyers.