CarMax Stock Surges as Lower Prices Boost Sales at Used Car Giant

A BMW M8 vehicle at a CarMax dealership in Pleasant Hill, California, on Dec. 18, 2024 — David Paul Morris / Bloomberg through Getty Pictures

Key Takeaways

CarMax reported better-than-expected third-quarter outcomes as decrease costs helped increase demand.
Retail unit gross sales gained 5.4% year-over-year, and wholesale gross sales grew 6.3%.
CEO Invoice Nash mentioned used car valuations have develop into extra secure.

CarMax (KMX) shares jumped Thursday when the most important U.S. used automobile retailer reported its first quarterly gross sales enhance in two years as decrease costs introduced out consumers.

CarMax posted a 1.2% year-over-year achieve in third-quarter income to $6.22 billion, and earnings per share (EPS) of $0.81. Each had been above Seen Alpha estimates.

Retail unit gross sales rose 5.4% to 184,243, with same-store gross sales including 4.3%. Retail unit income grew 1.2% to $4.89 billion as an $1,100 drop within the common promoting worth boosted demand.

Wholesale car gross sales added 6.3% to 136,013, and wholesale income rose 0.3% to $1.17 billion. That additionally benefitted from decrease costs, with the common sale worth down $500.

CarMax additionally purchased 270,000 automobiles from shoppers and sellers, a 7.9% hike from a 12 months in the past.

CEO Says Outcomes Helped by 'Extra Steady Surroundings'

Chief Govt Officer (CEO) Invoice Nash mentioned the outcomes had been helped by “a more stable environment for vehicle valuations.”

Shares of CarMax not too long ago rose greater than 4% to $84.77. They’re up about 10% year-to-date.

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