KMX

Petco Health & Wellness (WOOF) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +166.67%. A quarter ago, it was expected that this pet store chain would post a loss of $0.02 per share when it actually produced earnings of $0.01, delivering a surprise of +150%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Petco, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $1.49 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.3%. This compares to year-ago revenues of $1.49 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Petco shares have lost about 8.2% since the beginning of the year versus the S&P 500's gain of 11.5%. While Petco has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Petco was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $1.48 billion in revenues for the coming quarter and $0.19 on $6.01 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Retail-Wholesale sector, CarMax (KMX), is yet to report results for the quarter ended August 2026. This used car dealership chain is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CarMax's revenues are expected to be $7.05 billion, up 6.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petco Health and Wellness Company, Inc. (WOOF) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? CarMax (KMX), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, could be a great candidate to consider. This used car dealership chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 46.95%. For the last reported quarter, CarMax came out with earnings of $1.31 per share versus the Zacks Consensus Estimate of $0.94 per share, representing a surprise of 39.36%. For the previous quarter, the company was expected to post earnings of $0.22 per share and it actually produced earnings of $0.34 per share, delivering a surprise of 54.55%. For CarMax, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. CarMax currently has an Earnings ESP of +18.39%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarMax, Inc. (KMX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Carvana Co.? Here are five stocks we like better. Carvana delivered record Q2 results: Retail unit sales rose 38% year over year to 197,325, revenue increased 52% to $7.38 billion, and adjusted EBITDA reached a record $769 million. Growth is being driven by inventory expansion and capacity: Regions with larger inventory increases posted stronger sales growth, while Carvana plans additional production capacity and expects sequentially higher retail unit sales in Q3. The company raised its earnings trajectory while maintaining ambitious long-term goals: Carvana forecast 2026 adjusted EBITDA of $2.7 billion to $3.0 billion and continues targeting 3 million annual vehicle sales at a 13.5% adjusted EBITDA margin between 2030 and 2035. This Single Factor Is Holding Back Carvana’s Disruptive Edge Carvana (NYSE:CVNA) reported record second-quarter results as retail unit sales rose 38% year over year to 197,325 vehicles and revenue increased 52% to $7.38 billion. The online used-car retailer also posted record adjusted EBITDA of $769 million, net income of $513 million and GAAP operating income of $680 million. Chief Executive Officer Ernie Garcia said the company sold “almost 200,000 cars” during the quarter, nearly double its sales volume from two years earlier. He said that scale still represents approximately 2% of the used-car market and 1.5% of the broader auto retail market, underscoring the company’s remaining growth opportunity. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Avis, CarMax, and Carvana: 3 Car Stocks Sharply Diverge Carvana said its annualized adjusted EBITDA run rate exceeded $3 billion for the first time. Garcia said annualized operating income and net income were approximately $2.7 billion and $2 billion, respectively. Garcia emphasized the relationship between regional inventory expansion and sales growth. In the Midwest and Northeast, where Carvana added the most retail production capacity, inventory increased 57% and sales rose 54% in the second quarter. In the West and Southeast, where less capacity was added, inventory increased 17% and sales grew 30%. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Carvana's 5-for-1 Split: Green Light for a New Growth Era According to Garcia, larger local inventory assortments improve the odds that customers find vehicles they want, lifting conversion rates and making advertising spending more efficient. More vehicles near customers can also reduce delivery times and shipping fees while improving logistics efficiency, he said. The company said it had recently focused on bringing reconditioning costs under control before returning to inventory growth. Garcia said the company began increasing inventory more in line with sales during the middle of the second quarter and is moving back toward its traditional mix of vehicle ages and mileage after leaning into newer, higher-priced vehicles that required less reconditioning. → Innovative ETF Strategies That Are Paying Off This Summer Chief Financial Officer Mark Jenkins said revenue growth exceeded unit growth partly because of traditional gross-revenue treatment for certain vehicles acquired from a large retail marketplace partner, higher industry vehicle prices and a mix shift toward newer, more expensive vehicles. He said the revenue-treatment change will no longer affect year-over-year comparisons beginning in the third quarter, when revenue growth is expected to be more aligned with retail unit growth. Non-GAAP retail gross profit per unit declined $105 from a year earlier, primarily because the company lapped an approximately $100 benefit from tariff-related effects in the prior year. Higher non-vehicle costs, including inbound transportation fuel expenses, were more than offset by higher retail appreciation, Jenkins said. Non-GAAP wholesale GPU declined $158, as retail unit growth outpaced wholesale gross profits. Non-GAAP Other GPU declined $192, driven mainly by Carvana’s decision to offer customers lower interest rates and by higher benchmark rates. Those pressures were partly offset by lower funding costs, higher average amounts financed and higher finance attachment rates. Garcia said Carvana passed more than 100 basis points of interest-rate reductions to customers over the past year, with a greater focus on prime borrowers. He said the company’s fundamental financing gains helped offset a portion of the resulting pressure on Other GPU. Carvana’s non-GAAP SG&A expense per retail unit sold declined by $157. The company cited a $272 reduction in overhead expense per unit, partly offset by an $88 increase in operations expense per unit, mainly due to fuel costs. Advertising expense rose $27 per retail unit as the company continued to invest in awareness and said it expects advertising dollars to increase in the third quarter. Net income was $513 million, up $205 million year over year. Net income margin was 7.0%, compared with 6.4% a year earlier. Adjusted EBITDA margin was 10.4%, compared with 12.4%, with the decline primarily attributed to the gross-revenue treatment that increased retail revenue per unit. Net debt to trailing 12-month adjusted EBITDA fell to 1.0 times, which Jenkins called the company’s strongest financial position to date. For the third quarter, Carvana expects a sequential increase in retail units sold. For full-year 2026, the company forecast adjusted EBITDA of $2.7 billion to $3.0 billion, compared with $2.24 billion in 2025, assuming the operating environment remains stable. Management said the company’s long-term objective remains selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin between 2030 and 2035. Garcia said the company now needs to grow to less than four times its current scale to reach that target, compared with approximately six times its scale when the goal was introduced in early 2025. The company also discussed artificial intelligence initiatives, including its Sebastian customer-assistance tool. Garcia said customer-care costs have declined annually over the last four years, falling 40% three years ago, 30% two years ago, 20% last year and 10% this year. He attributed those reductions in part to increasingly capable digital customer experiences. Carvana said it is continuing to roll out operational tools, including Roll Call and Leader Hub, over coming quarters. It is also evaluating additional production capacity through ADESA-site conversions, existing inspection centers and a newly initiated fresh-build location. On new-vehicle efforts, Garcia said the initiative remains early but that customer satisfaction scores for new-car transactions have been “very high.” He said new cars are currently profitable for the company, though management did not provide further details on expected gross profit or inventory implications. Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships. Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Carvana Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

A month has gone by since the last earnings report for CarMax (KMX). Shares have added about 9% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CarMax due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. CarMax reported earnings per share of $1.31 for the first quarter of fiscal 2027, beating the Zacks Consensus Estimate of 94 cents by 39.61%. The bottom line declined 5.1% from $1.38 in the year-ago quarter.Quarterly revenues rose 6.2% year over year to $8.01 billion, surpassing the consensus mark of $7.6 billion by 5.43%. Results benefited from higher retail and wholesale revenues, while combined retail and wholesale unit sales rose 3.3% to 392,357. For the quarter ended May 31, 2026, CarMax’s total net sales and operating revenues were $8.01 billion, up from $7.55 billion a year ago. Used vehicle sales increased 4.7% to $6.39 billion, reflecting a higher average retail selling price.Total retail used vehicle unit sales were nearly flat at 230,293 versus 230,210 in the prior-year quarter. Comparable-store used-unit sales declined 0.8%, as the company lapped a year-ago quarter that benefited from tariff-driven demand. Wholesale vehicle sales rose 14% year over year to $1.43 billion. Wholesale unit sales increased 8.4% to 162,064, while the average wholesale selling price climbed 5.1% to $8,364.The wholesale business helped offset pressure on retail profitability. Wholesale vehicle gross profit increased 8.3% to $169.5 million, with gross profit per wholesale unit of $1,046, essentially in line with $1,047 in the prior-year quarter. Total gross profit declined 4.4% year over year to $854.4 million. Retail used vehicle gross profit fell 9.5% to $501.4 million, hurt by lower per-unit profitability.Retail gross profit per used unit was $2,177, down $230 from last year’s all-time record due to the continuation of pricing actions aimed at driving an improved sales trend. Selling, general and administrative expenses decreased 3.7% year over year to $635.2 million. The decline was primarily driven by lower compensation and benefits costs as the company made progress on targeted SG&A reductions.SG&A per total unit improved 6.8% to $1,619, down $118 from the year-ago quarter. CarMax remains on track to achieve $200 million in SG&A exit-rate savings by the end of fiscal 2027. CarMax Auto Finance’s income was $140.2 million, down 1% from the year-ago quarter. The decline reflected lower auto loans outstanding following last year’s $900 million non-prime securitization, partly offset by interest earned on higher-margin receivables and servicing income.CAF financed 43.3% of units sold after the impact of three-day payoffs, up 150 basis points year over year. The total interest margin percentage improved 20 basis points to 6.7%, while the weighted average contract rate was 11.3%, broadly in line with the prior-year quarter. CEO Keith Barr introduced a four-pillar strategic framework focused on improving CarMax’s offering, simplifying the customer experience, adding value on each transaction and running lean. The company plans to share more details at a strategic update in late fall.Pricing competitiveness, saleable inventory, digital-to-store conversion, CAF growth, EPP margin expansion, reconditioning efficiency and logistics improvements are key areas of focus for the company. The goal is to drive unit growth and earnings growth while supporting shareholder returns over time. CarMax ended the quarter with cash and cash equivalents of $132.2 million and inventory of $4.06 billion. Long-term debt excluding the current portion was $2.06 billion, while the current portion of long-term debt was $17.2 million.The company did not repurchase shares during the first quarter. It had $1.31 billion remaining under its share repurchase authorization as of May 31, 2026, and intends to resume buybacks at an appropriate time depending on market conditions, leverage and capital needs. Since the earnings release, investors have witnessed a upward trend in estimates revision. Currently, CarMax has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise CarMax has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarMax, Inc. (KMX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CarMax’s second quarter results were met with a negative market reaction despite the company exceeding Wall Street’s revenue and profit expectations. Management attributed the disconnect to a combination of operational friction in the customer journey and ongoing cost pressures. CEO Keith Barr highlighted areas for improvement, noting, "Our core operations are not yet fast and efficient enough. Retail prices and selection must continue to improve, and our costs remain too high." The company also acknowledged that complexity in the digital experience and in-store processes limited conversion rates, offsetting gains from recent pricing and marketing initiatives. Is now the time to buy KMX? Find out in our full research report (it’s free). Revenue: $8.01 billion vs analyst estimates of $7.41 billion (6.2% year-on-year growth, 8.2% beat) EPS (GAAP): $1.31 vs analyst estimates of $0.94 (38.3% beat) Operating Margin: 3.6%, in line with the same quarter last year Locations: 255 at quarter end, up from 250 in the same quarter last year Same-Store Sales rose 3.8% year on year (6.6% in the same quarter last year) Market Capitalization: $7.32 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brian Nagel (Oppenheimer) asked about the impact of lower gross profit per unit (GPU) on sales and if the company has found a sustainable margin level. CEO Keith Barr and CFO Enrique Mayor-Mora explained that competitive pricing has supported sales and that dynamic margin management will remain a focus, with further adjustments possible as market conditions evolve. Daniela Haigian (Morgan Stanley) questioned how increased spending on digital experience and advertising balances with SG&A savings targets. CFO Enrique Mayor-Mora responded that current SG&A reductions are on track, and any incremental investments will be self-funded through ongoing efficiency gains, though some pressure may persist through the year. Craig Kennison (Baird) asked for clarification on unproductive vehicle transfers. Barr detailed that logistics inefficiencies are being addressed by analyzing transfer patterns and optimizing the network to ensure vehicles are moved only when likely to support a sale, aiming to lower costs and improve inventory availability. Rajat Gupta (JPMorgan) inquired if CarMax’s actions signal a turning point for market share recovery. Mayor-Mora stated, “We’ve definitely turned the corner,” attributing improved competitiveness and alignment around key performance drivers as reasons to expect sustainable share gains. John Babcock (Barclays) pressed on how CarMax ensures the right mix of vehicles in inventory and how it adapts to changing consumer preferences. Barr explained that advanced data analytics and ongoing collaboration between buying and pricing teams enable better alignment of inventory with regional demand, including a growing focus on hybrids and electric vehicles. In the coming quarters, our analysts will monitor (1) the pace and effectiveness of CarMax’s digital transformation and its impact on sales conversion, (2) progress on logistics and inventory management reforms aimed at reducing costs and boosting inventory availability, and (3) evidence that dynamic pricing and cost discipline are delivering sustained margin and market share gains. Execution against these operational milestones will be central to evaluating CarMax’s ability to adapt in a competitive, evolving retail environment. CarMax currently trades at $51.49, in line with $51.57 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

CarMax reported first-quarter net revenues of $8.01 billion, up 6.2% from a year earlier, as new CEO Keith Barr unveiled a four-pillar growth strategy for the used-vehicle retailer. Net earnings per diluted share came in at $1.31, down from $1.38 in the same period last year. Analysts had penciled in 95 cents a share and $7.42 billion in revenue, according to CNBC. Even so, gross profit slipped 4.4% to $854.4 million. On a per-unit basis, used vehicle retail gross profit came in at $2,177 — $230 below what CarMax has described as a record set in the year-ago period — as pricing moves aimed at lifting sales volume weighed on margins. Comparable store used unit sales fell 0.8%. Net earnings dropped 11.8% to $185.6 million. Wholesale results were stronger. Wholesale unit sales rose 8.4% to 162,064, and wholesale gross profit climbed 8.3%. The company's CarMax Auto Finance unit posted income of $140.2 million, down 1% from the prior year, while its financing penetration rate expanded 150 basis points to 43.3% of units sold. Selling, general, and administrative expenses fell 3.7% to $635.2 million, driven by lower compensation and benefits costs. The company said it remains on track to achieve $200 million in exit-rate SG&A savings by the end of fiscal year 2027. Barr, who joined CarMax on March 16 after serving as CEO of InterContinental Hotels Group, outlined a strategy built around four pillars: Offering competitive pricing and greater inventory access, connecting digital and in-store experiences, growing profitability through its financing and extended protection plan businesses, and reducing costs through technology and operational efficiency. He said CarMax plans to host a detailed strategic update in late fall. "We are entering this fiscal year with a clear strategy that is driving early results," Barr said in a statement. "Our goal is clear: deliver strong unit sales and earnings growth that enables us to consistently reward our shareholders." During the quarter since taking charge, Barr focused on understanding CarMax's operations from the ground up; early moves out of that review included a website refresh, the rollout of an AI-powered call agent, and work to smooth the handoff between the company's digital and physical sales channels. Wednesday's results sent CarMax shares down 9%, paring what had been a roughly 25% year-to-date advance that included gains of about 16% accumulated during Barr's tenure. The company did not repurchase any shares during the quarter. As of May 31, 2026, $1.31 billion remained available under its buyback authorization.

Morningstar analyst David Whiston expects more upside in CarMax, but strongly predicated the bull scenario on the company managing to lower costs and improve customer conversion. At least eight Wall Street analysts raised their price targets on CarMax, including at least one bullish upgrade, following the results. For the first quarter, CarMax reported revenue of over $8 billion and earnings per share of $1.31, both comfortably ahead of estimates. Shares of CarMax (KMX) were in the spotlight after Morningstar issued positive commentary on the largest used car retailer in the U.S., cheering the new chief executive’s plans for the company. At the time of writing, KMX stock was up 10%, offsetting the 9% decline it recorded after reporting first-quarter results on Wednesday. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox CarMax’s new CEO, Keith Barr, teased a four-pillar strategy to overhaul the company, with details to be unveiled late in the fall. This didn’t appeal to impatient investors, even though the company reported a strong top- and bottom-line beat for the first quarter (Q1), the firm said in its research note. “The market is eagerly awaiting details of the new strategy, which we think caused thestock's June 17 decline,” said analyst David Whiston. Whiston said he appreciated the new CEO’s focus on costs and on optimizing the customer experience, which will help grow profits and send the stock higher. The firm certainly expects more upside, but strongly predicated the bull scenario if the company manages to lower costs and improve customer conversion. “We are glad to hear Barr recognize that the omnichannel approach needs to be improved so customers can make their store visit experience easier after starting the buying process online,” Whiston said. Morningstar has a five-star rating on KMX, which is equivalent to a “Strong Buy” rating, with a fair value of $96, implying an upside potential of 102% from the stock’s last closing price. For Q1, CarMax reported revenue of over $8 billion and earnings per share (EPS) of $1.31, both comfortably ahead of the Fiscal AI consensus estimates of $7.43 billion for revenue and $0.98 per share for EPS. At least eight Wall Street analysts raised their price targets on CarMax, which included at least one bullish upgrade. Stephens upgraded the company to “Overweight” from “Equal Weight,” citing an excellent setup for growth. The firm said the company just has to focus on being “the best version of itself right now,” implying the need for strong execution, TheFly reported. JPMorgan analyst Rajat Gupta said the company's Q1 report shows "signs of progress." Truist noted that the company is working on improving its price competitiveness and customer experience. Meanwhile, RBC Capital said the management deserves credit for moving quickly to address price competitiveness. Barclays said it is "encouraged" by the steps CarMax is taking to right-size the business. On Stocktwits, retail sentiment toward KMX stock turned ‘neutral’ from ‘bearish’ over the last 24 hours. KMX stock has gained nearly 36% so far this year but declined nearly 19% over the last 12 months. For updates and corrections, email newsroom[at]stocktwits[dot]com. Ahmed Farhath has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: RIVN Stock: Rivian Reportedly Hit With Class-Action Lawsuit Over False Gen 1 Vehicle Autonomy Claims Meta Reportedly Locks Down A New Data Center Deal With Crusoe CRVO Stock Rockets Nearly 100% On Patent Win Before Offering News Cools Rally

CarMax, Inc. KMX reported earnings per share of $1.31 for the first quarter of fiscal 2027, beating the Zacks Consensus Estimate of 94 cents by 39.61%. The bottom line declined 5.1% from $1.38 in the year-ago quarter.Quarterly revenues rose 6.2% year over year to $8.01 billion, surpassing the consensus mark of $7.6 billion by 5.43%. Results benefited from higher retail and wholesale revenues, while combined retail and wholesale unit sales rose 3.3% to 392,357. CarMax, Inc. price-consensus-eps-surprise-chart | CarMax, Inc. Quote For the quarter ended May 31, 2026, CarMax’s total net sales and operating revenues were $8.01 billion, up from $7.55 billion a year ago. Used vehicle sales increased 4.7% to $6.39 billion, reflecting a higher average retail selling price.Total retail used vehicle unit sales were nearly flat at 230,293 versus 230,210 in the prior-year quarter. Comparable-store used-unit sales declined 0.8%, as the company lapped a year-ago quarter that benefited from tariff-driven demand. Wholesale vehicle sales rose 14% year over year to $1.43 billion. Wholesale unit sales increased 8.4% to 162,064, while the average wholesale selling price climbed 5.1% to $8,364.The wholesale business helped offset pressure on retail profitability. Wholesale vehicle gross profit increased 8.3% to $169.5 million, with gross profit per wholesale unit of $1,046, essentially in line with $1,047 in the prior-year quarter. Total gross profit declined 4.4% year over year to $854.4 million. Retail used vehicle gross profit fell 9.5% to $501.4 million, hurt by lower per-unit profitability.Retail gross profit per used unit was $2,177, down $230 from last year’s all-time record due to the continuation of pricing actions aimed at driving an improved sales trend. Selling, general and administrative expenses decreased 3.7% year over year to $635.2 million. The decline was primarily driven by lower compensation and benefits costs as the company made progress on targeted SG&A reductions.SG&A per total unit improved 6.8% to $1,619, down $118 from the year-ago quarter. CarMax remains on track to achieve $200 million in SG&A exit-rate savings by the end of fiscal 2027. CarMax Auto Finance’s income was $140.2 million, down 1% from the year-ago quarter. The decline reflected lower auto loans outstanding following last year’s $900 million non-prime securitization, partly offset by interest earned on higher-margin receivables and servicing income.CAF financed 43.3% of units sold after the impact of three-day payoffs, up 150 basis points year over year. The total interest margin percentage improved 20 basis points to 6.7%, while the weighted average contract rate was 11.3%, broadly in line with the prior-year quarter. CEO Keith Barr introduced a four-pillar strategic framework focused on improving CarMax’s offering, simplifying the customer experience, adding value on each transaction and running lean. The company plans to share more details at a strategic update in late fall.Pricing competitiveness, saleable inventory, digital-to-store conversion, CAF growth, EPP margin expansion, reconditioning efficiency and logistics improvements are key areas of focus for the company. The goal is to drive unit growth and earnings growth while supporting shareholder returns over time. CarMax ended the quarter with cash and cash equivalents of $132.2 million and inventory of $4.06 billion. Long-term debt excluding the current portion was $2.06 billion, while the current portion of long-term debt was $17.2 million.The company did not repurchase shares during the first quarter. It had $1.31 billion remaining under its share repurchase authorization as of May 31, 2026, and intends to resume buybacks at an appropriate time depending on market conditions, leverage and capital needs. KMX carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Carvana Co. CVNA reported first-quarter 2026 (ended March 31, 2026) earnings of $1.69 per share, which beat the Zacks Consensus Estimate of $1.42 by 18.69% and increased from $1.51 in the year-ago quarter. Better-than-expected revenues across all segments drove the strong performance. Revenues of $6.43 billion beat the Zacks Consensus Estimate of $6.16 billion by 4.39% and increased 52% from last year.AutoNation, Inc. AN reported first-quarter 2026 (ended March 31, 2026) adjusted earnings of $4.69 per share, which missed the Zacks Consensus Estimate of $4.71 by 0.43%. Revenues totaled $6.55 billion, missing the Zacks Consensus Estimate of $6.66 billion by 1.6%. The top line declined from $6.69 billion reported in the first quarter of 2025. The results showed a familiar pattern: strong performance in higher-margin businesses was offset by weaker sales volumes and higher costs. Adjusted free cash flow was $255.6 million, with a solid 155% conversion of adjusted net income. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investing.com -- CarMax Inc. (NYSE:KMX) reported first-quarter earnings and revenue that exceeded analyst expectations, as the used-car retailer’s new four-pillar growth strategy showed early traction. The company posted adjusted earnings per share of $1.31, beating the analyst consensus of $0.96 by $0.35. Revenue rose 6.2% to $8.0 billion, surpassing the $7.39 billion estimate and up from $7.5 billion in the prior-year quarter. Combined retail and wholesale unit sales increased 3.3% to 392,357 vehicles. Retail used unit sales increased slightly to 230,293, though comparable store used unit sales declined 0.8%. Gross profit per retail used unit fell $230 to $2,177 from last year’s record, reflecting pricing actions implemented to drive improved sales trends. Shares rose 3.6% following the results. "We are entering this fiscal year with a clear strategy that is driving early results," said Keith Barr, President and Chief Executive Officer. "We have identified four strategic pillars that will meaningfully improve how we operate at scale and support strong performance." The company’s new strategy focuses on competitive pricing, seamless customer experience, maximizing transaction value, and cost reduction. CarMax reported progress on its cost-cutting initiative, with SG&A expenses declining 3.7% to $635.2 million. SG&A per total unit improved $118 to $1,619, representing a 6.8% improvement. The company remains on track to achieve targeted SG&A reductions of $200 million in exit rate savings by the end of fiscal 2027. CarMax Auto Finance penetration expanded 150 basis points YoY to 43.3%, reflecting execution of the company’s full spectrum growth strategy. CAF income was $140.2 million, down 1.0% from the prior year, driven by a decline in auto loans outstanding following a $900 million non-prime securitization in the third quarter. Wholesale unit sales increased 8.4% to 162,064, while gross profit per wholesale unit of $1,046 remained in line with the prior year. The company bought 322,000 vehicles from consumers and dealers, a decrease of 4.4% from last year. Following the report, analysts at Vital Knowledge said it was "a strong showing for KMX’s new CEO," with evidence that the "turnaround initiatives are bearing fruit." Related articles CarMax beats estimates as new strategy drives early results These 2 stocks are best positioned to benefit from higher uranium prices: analyst JPMorgan outlines ten strategic themes that could shape the outlook for 2026