CarMax (NYSE: KMX) stock is set for a rough start on Thursday, plummeting 8.18% in pre-market trading following the release of its fourth-quarter earnings report. The used car retailer's results painted a mixed picture, with revenue exceeding expectations but earnings falling short of analyst estimates.
For the fourth quarter of fiscal year 2025, CarMax reported earnings per share (EPS) of $0.58, missing the consensus estimate of $0.65 by 10.8%. This disappointment in bottom-line performance appears to be the primary driver behind the stock's pre-market decline. On a more positive note, the company's revenue came in at $6.00 billion, slightly beating the expected $5.96 billion.
Despite the revenue beat, investors seem to be focusing on the earnings miss and potential implications for the company's profitability. CarMax reported a gross profit of $667.9 million for the quarter, while combined retail and wholesale used vehicle unit sales reached 301,811. Looking ahead, the company expects capital expenditures of approximately $575 million in fiscal 2026, which may be influencing investor sentiment about future growth and expenses.