CarMax shares fall after used car retailer reports earnings beats, CEO details turnaround plan

A view of a CarMax dealership on April 10, 2025, in Santa Rosa, California. Justin Sullivan | Getty Images Shares of CarMax fell roughly 8% during midday trading Wednesday after the company beat Wall Street's quarterly earnings expectations and its new CEO detailed a high-level turnaround strategy for the company. Here's how the company performed in its first fiscal quarter , compared with average estimates compiled by LSEG: Earnings per share: $1.31 vs. 95 cents expected Revenue: $8.01 billion vs. $7.42 billion expected Despite the beats, questions remain about the company's ability to grow and cut costs under the plan as it faces tougher market conditions. The used vehicle retailer reported margin pressure and declining gross profit per retail used vehicle. CarMax's total gross profit was $854.4 million, down 4.4% compared with last year's first fiscal quarter. Retail used vehicle gross profit decreased 9.5% and retail gross profit per used unit was $2,177, down $230 from last year's all-time record, the company said. Its net revenue was up 6.2% compared with nearly $7.6 billion a year earlier. CarMax reported net earnings of $185.6 million, down 11.8% from $210.4 million in the same period last year. Shares of CarMax are still up roughly 25% this year, including a roughly 16% increase since Keith Barr, a former CEO of InterContinental Hotels Group , began leading the company on March 16. …