Overview

• CarMax reported earnings of $0.64 per share versus a $1.09 consensus and revenue of $6.594 billion versus $7.024 billion expected, down 6% year over year.
• Combined retail and wholesale units fell 4.1% to 338,031, with retail units down 5.4%, comparable-store retail units down 6.3%, and retail revenue down 7.2%.
• CarMax Auto Finance income declined 11.2% to $102.6 million as higher loan-loss provisions offset a 50-basis-point increase in total interest margin to 6.6%.
• Shares dropped more than 20% in early trading following the results, setting a new 52-week low.
• Management pointed to resilient per-unit margins and cost discipline, noting SG&A down 1.6%, a goal of at least $150 million in further SG&A cuts over 18 months, and new openings including three stores and a reconditioning/auction center.