CarMax Inc

CarMax reported second-quarter fiscal 2027 earnings of $1.16 per share, up 81.3% year over year and beating the Zacks Consensus Estimate of 68 cents by 70.6%, while revenues rose 19.5% to $7.88 billion and surpassed the consensus mark of $7.06 billion by 11.5%. For the quarter ended Aug. 31, 2026, used vehicle sales increased 19.7% to $6.31 billion, total retail used vehicle unit sales rose 13.8% to 227,391, and the average retail selling price climbed 6.3%, or approximately $1,600 per unit, to $27,623. Wholesale vehicle sales increased 18.2% to $1.36 billion on wholesale unit sales of 160,344, up 15.9%, though gross profit per wholesale unit declined by $135 to $858. CarMax Auto Finance income increased 32.1% to $135.6 million, aided by a lower provision for loan losses, and the company said it did not repurchase shares during the quarter but plans to resume buybacks at a modest level in the third quarter, with $1.31 billion remaining under its authorization as of Aug. 31, 2026. CarMax also said it remains on track to achieve $200 million in targeted SG&A exit-rate savings by the end of fiscal 2027.

Carnival Corp. Ltd. shares jumped 13.4% after the company reported third-quarter fiscal 2026 adjusted earnings of $1.43 per share, surpassing the Zacks Consensus Estimate of $1.36 per share. CarMax Inc. shares climbed 4.7% after posting second-quarter fiscal 2027 adjusted earnings of $1.16 per share, outpacing the Zacks Consensus Estimate of $0.68 per share. Vail Resorts Inc. shares rose 2.3% after the company posted a fourth-quarter fiscal 2026 adjusted loss of $5.34 per share, narrower than the Zacks Consensus Estimate of a loss of $5.40 per share. Fair Isaac Corp. shares plunged 26.5% following Federal Housing Finance Agency director Bill Pulte's introduction of a single pricing grid to mortgage pricing.

Case-Shiller home prices rose 1.9% in July, with the 20-city survey up 2.5% and the 10-city up 3.4%, though the report marked the 14th-straight decline in real home prices. Chicago posted the biggest gain for a fifth-straight month at 6.9%, followed by New York City at 5.8% and Cleveland at 4.2%, while Seattle fell 1.6%, Las Vegas 1.3% and Denver 1.1%. CarMax shares rose 5% after the auto dealer reported a 70.6% earnings surprise to $1.16 per share in its fiscal Q2, with revenues up 11.54% to $7.88 billion. Ahead of the open, the August JOLTS report is expected to show job openings easing to 7.2 million from 7.27 million, and the Conference Board's September Consumer Confidence reading is expected to dip to 89 from 89.4 in August. Pre-market futures were modestly higher, with the Dow up 70 points, the Nasdaq up 94, the S&P up 10 and the Russell 2000 up 4, as WTI traded at $90 per barrel and Brent at $103 per barrel.

AstraZeneca agreed to make a $2 billion strategic equity investment in Summit Therapeutics, sending the biopharmaceutical company's shares up 17.1% in premarket trading. The investment supports a collaboration combining Summit's flagship bispecific antibody, ivonescimab, with AstraZeneca's oncology pipeline, and AstraZeneca will acquire convertible preferred shares at a price equivalent to $18.36 per common share, a 10% premium to Summit's five-day volume-weighted average price. Fair Isaac tumbled 15% after the Federal Housing Finance Agency announced changes to mortgage pricing that will introduce competition to FICO's longstanding role in the mortgage credit-scoring market; FHFA Director Bill Pulte said Fannie Mae and Freddie Mac will consolidate their separate pricing matrices into a single unified grid that will incorporate VantageScore alongside the traditional FICO Classic score. CarMax rose 3.7% after reporting fiscal second-quarter earnings of $1.16 per share, beating analyst expectations of 68 cents, with revenue of $7.88 billion topping forecasts of about $7.06 billion. AAR Corp. surged 6.9% after announcing an agreement to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of $4 billion, alongside adjusted diluted EPS of $1.49 and revenue of $918 million that beat expectations. Netflix rose 1.4% after Deutsche Bank upgraded the streaming giant to Buy from Hold with a $95 price target, while AbCellera Biologics gained 2.1% on a JPMorgan Overweight initiation with a $17 price target and Q32 Bio rose 9.4% ahead of a key clinical data presentation at the European Academy of Dermatology and Venereology Congress in Vienna beginning Sept. 30.

CarMax, the nation’s largest used car retailer, is working with Sierra to enhance its inbound call experience using advanced AI voice-enabled agents. Deployed in May, the Sierra agents use conversational questions to quickly answer common inquiries like store hours and vehicle availability, and to route customers to associates more consistently. Since launch, CarMax has seen an increase in call resolution and a decline in unresolved calls, and plans to add appointment management for appraisals and test drives. Shamim Mohammad, CarMax Chief Information and Technology Officer, said the partnership ensures frequent questions are answered on demand, freeing associates to focus on bigger car-shopping decisions. Bret Taylor, Co-Founder and CEO of Sierra, noted the AI eliminates hold times and repetitive transfers while letting associates spend more time helping customers find the right car.

Illinois Tool Works and CarMax are two industrial stocks that could deliver surprising gains. Illinois Tool Works, a diversified manufacturer of products ranging from restaurant dishwashers to automotive parts, has raised its dividend for 63 consecutive years and repurchased nearly 10% of its outstanding shares over the past five years, driving market-beating total returns. Used car retailer CarMax has seen its stock rally more than 40% since the end of last year, including a 19% gain last month, as industry data suggests the cyclical headwinds of low inventory and high prices may be easing. Cox Automotive reports that used car inventories have edged up to 47 days' worth, while the average age of vehicles on U.S. roads stands at 12.8 years and the average new car price is $49,758, potentially forcing consumers back into the used market.

CarMax shares have gained about 9% since its last earnings report, outperforming the S&P 500. The company reported fiscal 2027 first-quarter earnings per share of $1.31, beating the Zacks Consensus Estimate of 94 cents by 39.61%, while quarterly revenues rose 6.2% year over year to $8.01 billion, surpassing the consensus mark of $7.6 billion. Combined retail and wholesale unit sales increased 3.3% to 392,357, driven by a 14% rise in wholesale vehicle sales to $1.43 billion, though total gross profit declined 4.4% to $854.4 million amid lower retail per-unit profitability. Selling, general and administrative expenses fell 3.7% to $635.2 million as the company targets $200 million in SG&A exit-rate savings by the end of fiscal 2027. CarMax Auto Finance's income dipped 1% to $140.2 million, while its financing penetration rate improved 150 basis points to 43.3%.

CarMax shares surged 13% on Thursday, recovering from a 9% drop the previous session, as analysts issued bullish post-earnings notes. Stephens analyst Jeff Lick upgraded the stock to overweight from equal weight and raised his price target to $66 from $43, citing CarMax's ability to remain the top used-car retailer. J.P. Morgan lifted its target by $1 to $38 while maintaining an underweight rating, and Baird raised its target to $55 from $48 with an outperform rating. The moves followed CarMax's first-quarter fiscal 2027 results, which beat top- and bottom-line estimates and included 6% year-over-year revenue growth.

CarMax reported first-quarter fiscal 2027 earnings per share of $1.31, beating the Zacks Consensus Estimate of 94 cents by 39.61 percent. Quarterly revenues rose 6.2 percent year over year to $8.01 billion, surpassing the consensus mark of $7.6 billion. The results were driven by higher retail and wholesale revenues, with combined unit sales up 3.3 percent to 392,357. Selling, general and administrative expenses declined 3.7 percent to $635.2 million, helping offset a 4.4 percent drop in total gross profit to $854.4 million. CarMax Auto Finance income edged down 1 percent to $140.2 million, while its financing penetration rate improved 150 basis points to 43.3 percent.

Several stocks made notable premarket moves on Wednesday. CarMax rose more than 3.5% after reporting first-quarter earnings of $1.31 per share, well above the 95 cents expected by analysts polled by LSEG. AST SpaceMobile jumped 6% following the successful launch of three new satellites to build its cellular broadband network in space, using SpaceX's Falcon 9 rocket. La-Z-Boy surged 16% after retail sales rose 11% in its fiscal fourth quarter and it delivered an earnings beat. Lionsgate Studios fell more than 5% after Netflix denied reports of acquisition interest, reversing a 14% gain on Tuesday. Semiconductor stocks rebounded from a sell-off, with Intel up more than 3%, Advanced Micro Devices up more than 2.5%, and Broadcom and Qualcomm up more than 1.5%. Figma gained 4% after Citi initiated coverage with a buy rating, citing a $25 billion total addressable market. Oracle slipped 1% after calling a Business Insider report inaccurate that said Microsoft ended a $3 billion cloud infrastructure lease deal over security concerns. Jabil fell more than 2% despite an earnings and revenue beat and above-expectations guidance.