Carmax Inc (NYSE:KMX) stock fell 0.97% (As on September 27, 11:29:06 AM UTC-4, Source: Google Finance) after the company posted mixed earnings for the second quarter of FY 25. Total retail used vehicle unit sales increased 5.1% to 211,020 compared to the prior year’s second quarter. Comparable store used unit sales increased 4.3% from the prior year’s second quarter. Total retail used vehicle revenues increased 1.5% compared with the prior year’s second quarter, driven by the increase in retail used units sold, partially offset by the decrease in average retail selling price, which declined approximately $1,250 per unit or 4.6%. Total wholesale vehicle unit sales decreased 0.3% to 141,458 versus the prior year’s second quarter. Total wholesale revenues decreased 12.7% compared with the prior year’s second quarter primarily due to a decrease in the average wholesale selling price of approximately $1,150 per unit or 12.9%. The company bought 300,000 vehicles from consumers and dealers, up 2.9% compared to last year’s second quarter. Of these vehicles, 269,000 were bought from consumers and 31,000 were bought through dealers, a decrease of 1.2% and an increase of 61.4%, respectively, from last year’s second quarter. Other sales and revenues increased by 13.2% compared with the second quarter of fiscal 2024, representing an increase of $21.3 million, primarily reflecting an increase in EPP revenues resulting from stronger margins.

Moreover, Total gross profit was $760.5 million, up 9.1% versus last year’s second quarter. Retail used vehicle gross profit increased 5.9% and retail gross profit per used unit was $2,269, in line with last year’s second quarter. Wholesale vehicle gross profit increased 0.9% versus the prior year’s second quarter. Gross profit per unit was $975, consistent with last year’s second quarter. Other gross profit increased 33.1% primarily reflecting an increase in EPP revenues primarily resulting from stronger margins and a year-over-year improvement in service gross profit driven by the efficiency and cost coverage measures that we have implemented as well as by the positive retail unit growth.

KMX in the second quarter of FY 25 has reported the adjusted earnings per share of 85 cents, missing the analysts’ estimates for the adjusted earnings per share of 86 cents. The company had reported the adjusted revenue decline of 1 percent to $7 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $6.85 billion. CAF income decreased 14.4% to $115.6 million driven by an increase in the provision for loan losses that outweighed growth in CAF’s average managed receivables and a stable net interest margin percentage.