Episode Details

CarMax, Inc. (KMX) Q2 FY2027 — Saved intraday reference $59.10 at 15:36 UTC; the current earnings-day close is not yet known. CarMax sold more cars and spread overhead across more transactions. Lower provisions, a loan-sale gain and investment income also helped profits. We separate repeatable operating progress from those contributions before valuing the recovery. THE CALL: HOLD (3/5, MODERATE) — Central fair value ~$55 vs ~$59.1 at the saved September 29 intraday snapshot. KEY METRICS: - Revenue $7.878B, up 19.5% - Retail units +13.8%; retail GPU $2,105 - SG&A per total unit $1,621 - CAF income $135.6M; loan-sale gain $16.6M What to watch: Comparable used units stay above 5%, retail GPU at least $2,100, SG&A per total unit at or below $1,621, and sound credit performance. Full research packet: https://chargedalpha.com/research/kmx-q2-fy2027 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.