Investing.com -- CarMax (NYSE:KMX) tumbled nearly 8% in premarket trading Thursday after the car retailer missed profit expectations for the fourth quarter of fiscal 2025.
The company reported fourth-quarter earnings of $0.58 per share, falling short of Wall Street expectations by $0.07.
Revenue for the quarter came in at $6 billion, slightly ahead of the $5.93 billion consensus forecast.
“We are pleased with the continuing momentum across our diversified business during the fourth quarter. We delivered robust EPS growth driven by increases in unit sales and buys, strong growth in total gross profit, an increase in CAF income, and ongoing management of SG&A,” said Bill Nash, president and CEO of CarMax.
"In fiscal year 2026, we expect to require low-single-digit gross profit growth to lever SG&A," the company said.
Used vehicle sales totaled $4.84 billion in the quarter, marking a 7.5% increase from the prior year and narrowly beating estimates of $4.81 billion. Wholesale vehicle revenue rose 3.5% year-over-year to $1.01 billion, just under the projected $1.03 billion.
The company forecasts capital expenditures of around $575 million in fiscal 2026.
