How Investors Are Reacting To CarMax (KMX) Weak Q3 And US$150M Cost-Cut Plan

Simply Wall St.12-18 17:26

Earlier this month, CarMax reported a weak Q3, with revenue falling 6% year on year and missing analysts’ estimates by 6.7%, while outlining plans to cut SG&A expenses by at least US$150,000,000 over ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2592974599?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427","is_english":true,"pubTime":"2025-12-18 17:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2592974599","market":"sg","top_or_hot":-1,"title":"How Investors Are Reacting To CarMax (KMX) Weak Q3 And US$150M Cost-Cut Plan","media":"Simply Wall St.","content":"<div>\n<p>Earlier this month, CarMax reported a weak Q3, with revenue falling 6% year on year and missing analysts’ estimates by 6.7%, while outlining plans to cut SG&A expenses by at least US$150,000,000 over ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/how-investors-are-reacting-to-carmax-kmx-weak-q3-and-us150m\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Investors Are Reacting To CarMax (KMX) Weak Q3 And US$150M Cost-Cut Plan</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Investors Are Reacting To CarMax (KMX) Weak Q3 And US$150M Cost-Cut Plan\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-18 17:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/how-investors-are-reacting-to-carmax-kmx-weak-q3-and-us150m><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Earlier this month, CarMax reported a weak Q3, with revenue falling 6% year on year and missing analysts’ estimates by 6.7%, while outlining plans to cut SG&A expenses by at least US$150,000,000 over ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/how-investors-are-reacting-to-carmax-kmx-weak-q3-and-us150m\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ISBC","symbol_name":"投资者银行","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/how-investors-are-reacting-to-carmax-kmx-weak-q3-and-us150m","article_id":"2592974599","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/how-investors-are-reacting-to-carmax-kmx-weak-q3-and-us150m","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2592974599","pubTimestamp":1766049998,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Earlier this month, CarMax reported a weak Q3, with revenue falling 6% year on year and missing analysts’ estimates by 6.7%, while outlining plans to cut SG&A expenses by at least US$150,000,000 over the next 18 months.\nManagement’s emphasis on long-term confidence and cost reductions, despite sector-wide softness and cautious guidance, highlights how operational discipline is becoming central to CarMax’s story.\nNext, we’ll explore how the disappointing Q3 results and planned US$150,000,000...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"ISBC":"投资者银行","BK4211":"区域性银行","BK4214":"汽车零售","BK4588":"碎股","BK4585":"ETF&股票定投概念","KMX":"车美仕"},"translate_title":"投资者对CarMax(KMX)第三季度疲软和1.5亿美元成本削减计划有何反应","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISBC":1.5,"KMX":1.5},"content_text":"Earlier this month, CarMax reported a weak Q3, with revenue falling 6% year on year and missing analysts’ estimates by 6.7%, while outlining plans to cut SG&A expenses by at least US$150,000,000 over the next 18 months. Management’s emphasis on long-term confidence and cost reductions, despite sector-wide softness and cautious guidance, highlights how operational discipline is becoming central to CarMax’s story. Next, we’ll explore how the disappointing Q3 results and planned US$150,000,000 SG&A cuts reshape CarMax’s existing investment narrative. Trump has pledged to \"unleash\" American oil and gas and these 22 US stocks have developments that are poised to benefit.CarMax Investment Narrative RecapTo own CarMax, you need to believe its omni channel used car model and nationwide footprint can convert sector weakness into durable profitability. The weak Q3 and softer guidance keep near term earnings under pressure, while the key risk is whether margin and volume headwinds, including in wholesale, persist longer than expected. The planned US$150,000,000 SG&A cuts are important to that near term margin story, but do not appear to change the core long term thesis. The most relevant recent announcement here is CarMax’s Q3 guidance for an 8% to 12% decline in comparable used unit sales and sharply lower EPS. Coupled with the revenue miss and modest profit margins, this frames a near term catalyst around how effectively management can protect profitability through cost controls without harming customer experience or growth investments. Yet investors also need to be aware that pressure on wholesale gross profit per unit could... Read the full narrative on CarMax (it's free!)CarMax’s narrative projects $29.8 billion revenue and $919.9 million earnings by 2028. This implies 1.3% yearly revenue growth and about a $361 million earnings increase from $558.5 million today.Uncover how CarMax's forecasts yield a $39.77 fair value, a 3% downside to its current price.Exploring Other PerspectivesKMX 1-Year Stock Price Chart Five members of the Simply Wall St Community value CarMax between US$39.77 and US$99.80 per share, highlighting very different expectations. Against this wide spread, the recent revenue miss and guidance for declining comparable sales raise practical questions about how quickly any cost savings can support margins and overall performance.Explore 5 other fair value estimates on CarMax - why the stock might be worth over 2x more than the current price!Build Your Own CarMax NarrativeDisagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your CarMax research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.Our free CarMax research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CarMax's overall financial health at a glance.Curious About Other Options?Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 36 best rare earth metal stocks of the very few that mine this essential strategic resource.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTechNew: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2592974599","isCrawlerRequest":true}