CarMax Delivers Blowout Q1 Earnings; Shares Jump 7%

Used car retailer CarMax, Inc. (KMX) delivered blowout quarterly results, driven by a substantial demand for used autos and exceptional performance by the company’s growing omni-channel business model. Shares jumped 6.7% to close at $127.40 on June 25. (See CarMax stock chart on TipRanks)

For the first quarter, net earnings stood at $2.63 per share, up from $0.03 year over year, and surpassed the Street’s estimate of $1.63 per share.

Net sales climbed 138.4% to $7.70 billion, beating the analysts’ estimate of $6.24 billion.

Retail used car sales doubled to 270,799 cars, and Wholesale used car sales grew 186.6% to 181,389 compared to the year-ago period. Retail comparable store sales increased 99.1% year-over-year.

Bill Nash the company’s President and CEO said, “With the most customer-centric experience in our industry, a highly profitable operating and financial model, and significant opportunities to grow our existing businesses and expand across the broader used auto ecosystem, we remain confident in our ability to meet our long-term targets of revenue growth, total unit growth, and market share.”

By fiscal 2026, CarMax targets $33 billion in revenue and 2 million units in sales per year through its Retail and Wholesale channels combined. Additionally, the company expects to grow its 0-10 year old used autos’ market share to more than 5% by the calendar year 2025.

Following the results, Oppenheimer analyst Brian Nagel assigned a Buy rating to the stock, with a price target of $153 implying 20.1% upside potential from current levels.

Nagel said, “KMX continues to transform its once traditional Retail business into a digitally-driven omni-channel model. As KMX builds out its digital offering, we view it as only a matter of time before the market begins to reward KMX shares more fully for a much more powerful, tech-enabled model.”

With 5 Buys and 2 Holds, the stock has a Moderate Buy consensus rating. The average analyst CarMax price target of $146.40 implies 14.9% upside potential from current levels. Shares gained 43.2% over the past year.

Also, TipRanks data shows that financial blogger opinions are 90% Bullish on KMX, compared to a sector average of 72%.