CarMax (KMX) News Today

CarMax, Inc. (NYSE:KMX) shares are up today after the company reported better-than-expected first-quarter results, driven by strong used-car demand amid tariff concerns and solid operational execution.

• Q1 EPS of $1.38 crushed consensus estimates (~$1.18), marking a 42% year-over-year jump that fueled a premarket rally
• Revenue rose to $7.5 billion (+6% year-over-year) as retail used-vehicle comps climbed 8.1%
• Tariff-related uncertainty boosted demand for used cars, lifting unit volumes and margins
• Record gross profit of $893.6 million and an accelerated share-repurchase pace underscored management confidence
• Analysts at William Blair and Wedbush reiterated Buy/Outperform ratings following the strong beat
• Management highlighted omnichannel initiatives and AI-driven efficiency gains during the earnings call
• Investors can review the full Q1 earnings transcript for deeper insights into guidance and strategy
• CarMax Auto Finance increased its loan-loss provision to $101.7 million from $81.2 million a year ago, reflecting an uncertain credit backdrop
• Rising credit losses in the financing business remain a headwind for future profits
• J.P. Morgan maintained a Sell rating on concerns over financial pressures and intensifying competition

Overall, CarMax’s strong top-line growth and margin expansion have outweighed credit-related provisions, but investors are watching auto-finance headwinds and rating divergence for signs of near-term volatility.