CarMax (KMX) Fiscal Q2 2027 Earnings Call: Sales Rise 19%, EPS Up 81%
Source Tradingkey
Key Takeaways
- CarMax reported fiscal Q2 2027 sales of $7.9 billion, up 19% year over year. Used unit comparable sales rose 13%, while total retail and wholesale vehicle volume increased 15% to approximately 388,000 units.
- Diluted EPS increased 81% to $1.16 from $0.64. The improvement reflected higher unit volume, stronger extended protection plan margins, increased CarMax Auto Finance contribution and SG&A leverage.
- Used retail gross profit per unit declined $111 to $2,105 as CarMax used sharper pricing to support demand. Management now expects the full-year decline to be less than its previous $200-per-unit outlook.
- CarMax Auto Finance income rose 32% to $136 million, primarily due to a $29 million reduction in the loan-loss provision and a $17 million gain on sale. Management expects FY2027 CAF income to be slightly below FY2026 as the company expands Tier 2 lending.
- The company remains on track for $200 million in identified annualized savings at the FY2027 exit rate. It also plans to resume share repurchases at a modest pace in fiscal Q3, with $1.31 billion of authorization remaining.
- Management attributed roughly half of comparable-sales performance to internal actions—including pricing, cost efficiencies and customer-experience improvements—and the other half to benefits from increased FTC pricing enforcement.
Key Financial Data
| Metric | Fiscal Q2 2027 | Year-over-year change | Key context |
|---|---|---|---|
| Total sales | $7.9 billion | +19% | Supported by higher volume and average retail selling prices |
| Diluted EPS | $1.16 | +81% | Versus $0.64 in the prior-year quarter |
| Retail and wholesale units | Approximately 388,000 | +15% | Total used retail units rose 14%; wholesale units rose 16% |
| Used unit comparable sales | — | +13% | Driven largely by improved price competitiveness |
| Average retail selling price | $27,623 | +$1,630 per unit | Mix included more newer, higher-priced vehicles |
| Average wholesale selling price | $8,036 | +$145 per unit | Wholesale volume also increased |
| Total gross profit | $799 million | +11% | Other gross profit was the fastest-growing component |
| Used retail gross profit | $479 million | +8% | Higher volume partly offset lower gross profit per unit |
| Used retail gross profit per unit | $2,105 | -$111 | Pricing was managed dynamically to support sales |
| Wholesale gross profit per unit | $858 | -$135 | Higher volume offset the lower unit margin |
| Other gross profit | $183 million | +33% | Increased by $46 million |
| SG&A expense | $629 million | +4.6% | SG&A per total unit fell 9% to $1,621 |
| CAF income | $136 million | +32% | Lower provision expense and a gain on sale supported results |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Spot gold (XAUUSD) plunged 4% on Monday to close at $4,114.93 per ounce, hitting an intraday low of $4,110.80, its lowest level since August 5. Heading into Tuesday's Asian trading sessio
The 30-year Treasury just hit a 22-year high — and the bond market is not pricing the Fed, it is pricing the deficitThe 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth tradingNvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
The Reserve Bank of Australia (RBA) is widely expected to raise the Official Cash Rate (OCR) by 25 basis points (bps) to 4.60% from 4.35% on Tuesday, after keeping rates unchanged at its previous two meetings
Silver price (XAG/USD) is down 4.3% to near $61.50 during the European trading session on Monday. The white metal nosedives as elevated United States (US) Treasury Yields have diminished its appeal.
