CarMax Scores an Earnings Beat. The Stock Barely Moves.

CarMax stock has tumbled 50% this year as of Wednesday’s close. (Justin Sullivan/Getty Images)

Key Points

• CarMax reports fiscal third-quarter earnings of 43 cents a share, exceeding estimates of 31 cents.
• Net sales and operating revenue total $5.79 billion, a 6.9% decrease from last year but above expectations.
• The company plans to reduce retail used unit margins and increase marketing spending to improve sales in the fiscal fourth quarter.

CarMax stock was flat Thursday after the used-car retailer beat quarterly earnings and sales expectations but said it plans to reduce margins.

Shares fell sharply in premarket trading, then inched up 0.5% when the regular session kicked off. The stock is down 50% this year on plunging sales and the departure of its CEO last month.

CarMax posted earnings of 43 cents a share for its fiscal third quarter; analysts had expected 31 cents. Net sales and operating revenue totaled $5.79 billion, down 6.9% from last year but above Wall Street’s call for $5.64 billion. And comparable-store used unit sales fell 9% from a year before.

To improve fourth-quarter sales, CarMax said it planned to lower retail used unit margins and spend more on marketing. The company didn’t offer guidance for the fourth quarter.

“Based on recent results, it is clear CarMax needs change,” said interim CEO David McCreight, who added that the search continues for a permanent chief executive.

CarMax has given up ground in a used-vehicle market that has remained broadly stable this year, despite rising prices. Used sales volumes across the industry have been above 2024 levels in nine out of 11 months this year, according to Cox Automotive.

CarMax competitor Carvana has grown sales in each quarter this year. Carvana stock was up 2% on Thursday and has soared 119% in 2025.

Write to Nate Wolf at nate.wolf@barrons.com