CarMax (NYSE:KMX) has announced a strong performance for its third quarter of fiscal year 2025, beating Wall Street revenue forecasts and posting significant gains in earnings.
The used car dealership chain reported revenue of $6.22 billion for the quarter, surpassing the $5.99 billion expected by analysts surveyed by Zacks.
Net earnings for the quarter reached $125.4 million, translating to $0.81 per diluted share, a substantial 55.8% increase from the $0.52 per share reported in the same period last year.
This robust growth was driven by strong performance across multiple business segments.
While retail used unit sales saw a 5.4% increase, wholesale unit sales rose by 6.3%.
This surge in unit volumes, coupled with strong unit margin performance, fueled a 10.6% increase in total gross profit, reaching $677.6 million.
In addition to its strong financial results, CarMax also announced the repurchase of $114.8 million in shares during the quarter.