Carmax Inc (NYSE:KMX) stock plunges 20.52% (As on April 10, 11:36:49 AM UTC-4, Source: Google Finance) after the company’s fiscal fourth-quarter profit and used-vehicle sales came in below analysts’ expectations. CarMax didn’t give specific financial forecasts for fiscal 2026, but the company did suspend the timelines for its previously announced long-term growth targets “given the potential impact of broader macro factors.” A year ago, CarMax said it expected to reach 2 million annual vehicle sales between fiscal 2026 and 2030. Retail used unit sales increased 6.2% and comparable store used unit sales increased 5.1%; wholesale units increased 3.1% to 119,156 versus the prior year’s fourth quarter. Total wholesale revenues increased 3.5% compared with the prior year’s fourth quarter. CarMax’s share of the nationwide age 0-10 year old used vehicle market remained at 3.7% in calendar year 2024. Accelerating gains in the back half of the year, reflecting the positive momentum across the business, offset losses in the first half of the year. The company bought 269,000 vehicles from consumers and dealers, an increase of 15.3%. Online retail sales accounted for 15% of retail unit sales, compared to 14% in the fourth quarter of last year. Revenue from online transactions, including retail and wholesale unit sales, was $1.8 billion, or approximately 29% of net revenues, slightly down from 30% in last year’s fourth quarter.

Moreover, total gross profit of $667.9 million increased 13.9%, driven by unit volumes and strong unit margin performance. Gross profit per retail used unit of $2,322, up $71 per unit and achieving a fourth quarter record. Gross profit per wholesale unit of $1,045, historically strong, down $75 per unit. Extended Protection Plans (EPP) margin per retail unit of $580, an increase of $10 per unit. Service margin loss of $4 per retail unit, an improvement of $257 per retail unit. CarMax Auto Finance (CAF) income of $159.3 million, an increase of 8.2%, due to growth in net interest margin percentage.

Additionally, as of February 28, 2025, the company had $1.94 billion remaining available for repurchase under the outstanding authorization.

KMX in the fourth quarter of FY24 has reported the adjusted earnings per share of 58 cents, missing the analysts’ estimates for the adjusted earnings per share of 68 cents. The company had reported the adjusted revenue growth of 6.7 percent to $6 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $6.01 billion.