Why CarMax (KMX) Is Down 12.5% After Goodwill Impairment And Turnaround Plan Announcement - And What's Next

Simply Wall St.04-20

In April 2026, CarMax reported a fourth-quarter net loss of US$120.68 million, including a US$141.26 million non-cash goodwill impairment, alongside news of new store and reconditioning/auction center...

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/2628793660?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427","is_english":true,"pubTime":"2026-04-20 01:04","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2628793660","market":"sg","top_or_hot":-1,"title":"Why CarMax (KMX) Is Down 12.5% After Goodwill Impairment And Turnaround Plan Announcement - And What's Next","media":"Simply Wall St.","content":"<div>\n<p>In April 2026, CarMax reported a fourth-quarter net loss of US$120.68 million, including a US$141.26 million non-cash goodwill impairment, alongside news of new store and reconditioning/auction center...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/why-carmax-kmx-is-down-125-after-goodwill-impairment-and-tur\">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>Why CarMax (KMX) Is Down 12.5% After Goodwill Impairment And Turnaround Plan Announcement - And What's Next</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\">\nWhy CarMax (KMX) Is Down 12.5% After Goodwill Impairment And Turnaround Plan Announcement - And What's Next\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-20 01:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/why-carmax-kmx-is-down-125-after-goodwill-impairment-and-tur><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In April 2026, CarMax reported a fourth-quarter net loss of US$120.68 million, including a US$141.26 million non-cash goodwill impairment, alongside news of new store and reconditioning/auction center...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/why-carmax-kmx-is-down-125-after-goodwill-impairment-and-tur\">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":"AIPO","symbol_name":"Defiance AI and Power Infrastructure ETF","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-kmx/carmax/news/why-carmax-kmx-is-down-125-after-goodwill-impairment-and-tur","article_id":"2628793660","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/why-carmax-kmx-is-down-125-after-goodwill-impairment-and-tur","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2628793660","pubTimestamp":1776618279,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"In April 2026, CarMax reported a fourth-quarter net loss of US$120.68 million, including a US$141.26 million non-cash goodwill impairment, alongside news of new store and reconditioning/auction center openings and plans for roughly US$400 million in fiscal 2027 capital expenditures.\nAt the same time, CarMax paused buybacks after repurchasing 115.08 million shares since 2012, refreshed its board following engagement with activist investor Starboard Value, and outlined a turnaround plan...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"AIPO":"Defiance AI and Power Infrastructure ETF","BK4528":"SaaS概念","CHAT":"ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF","AGIX":"通用人工智能 ETF-AGIX","AIYY":"YIELDMAX AI OPTION INCOME STRATEGY ETF","BK4543":"AI","BK4585":"ETF&股票定投概念","ARTY":"ISHARES FUTURE AI & TECH ETF","BK4551":"寇图资本持仓","KMX":"车美仕","BK4587":"ChatGPT概念","BK4214":"汽车零售","BK4023":"应用软件","AI":"C3.ai, Inc.","BK4588":"碎股"},"translate_title":"为什么CarMax(KMX)在商誉减值和扭亏为盈计划公布后下跌12.5%——以及接下来会发生什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHAT":0.62,"AIPO":0.62,"AGIX":0.62,"KMX":1.5,"ARTY":0.62,"AIYY":0.6,"AI":0.62},"content_text":"In April 2026, CarMax reported a fourth-quarter net loss of US$120.68 million, including a US$141.26 million non-cash goodwill impairment, alongside news of new store and reconditioning/auction center openings and plans for roughly US$400 million in fiscal 2027 capital expenditures. At the same time, CarMax paused buybacks after repurchasing 115.08 million shares since 2012, refreshed its board following engagement with activist investor Starboard Value, and outlined a turnaround plan centered on lower prices, higher marketing spend, and an enhanced digital experience under new CEO Keith Barr. We’ll now examine how CarMax’s goodwill impairment and price-cut-driven turnaround plan may reshape the consensus investment narrative around execution. Invest in the nuclear renaissance through our list of 93 elite nuclear energy infrastructure plays powering the global AI revolution.AdvertisementCarMax Investment Narrative RecapTo own CarMax today, you need to believe its lower-price, higher-volume strategy and digital upgrades can restore earnings power despite recent margin pressure and a Q4 net loss tied to a US$141.26 million goodwill impairment. In the near term, the key catalyst is execution on this price-cut-driven turnaround, while the biggest risk is further erosion in unit margins if competitive pricing and sourcing pressures persist. The latest results meaningfully sharpen both sides of that equation. Among the recent announcements, the pause in share buybacks after retiring more than 115 million shares since 2012 stands out. It effectively frees up cash to fund roughly US$400 million of planned fiscal 2027 capital expenditures for new stores and offsite reconditioning and auction facilities, tying capital allocation more directly to the same volume and efficiency improvements that underpin the current turnaround narrative. Yet against this potential, investors should be aware that mounting pressure on gross margins and credit costs 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 requires 1.3% yearly revenue growth and about a $361 million earnings increase from $558.5 million today.Uncover how CarMax's forecasts yield a $38.31 fair value, a 6% downside to its current price.Exploring Other PerspectivesKMX 1-Year Stock Price Chart Before this Q4 loss, the most optimistic analysts were penciling in flat revenue but earnings near US$1.1 billion by 2029, a far more upbeat view than consensus, and one that could shift meaningfully now that execution risks and digital competition are in sharper focus.Explore 6 other fair value estimates on CarMax - why the stock might be worth less than half the current price!Decide For YourselfDon't just follow the ticker - dig into the data and build a conviction that's truly your own.A great starting point for your CarMax research is our analysis highlighting 2 key rewards and 3 important warning signs 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.Searching For A Fresh Perspective?Opportunities like this don't last. These are today's most promising picks. Check them out now:The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.Find 60 companies with promising cash flow potential yet trading below their fair value.Outshine the giants: these 19 early-stage AI stocks could fund your retirement.  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.New: 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":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":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,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.0","shortVersion":"4.42.0","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/2628793660","isCrawlerRequest":true}