← CarMax overview

CarMax vs Lithia Motors: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

CarMax Inc (KMX)

Q3 2026
▲2▼2

CarMax Q2 Earnings Blow Past Estimates, But Layoffs and Legal Probe Loom

  • Q2 Earnings Beat and Strong Revenue Growth CarMax reported fiscal Q2 EPS of $1.16, beating estimates by 70.6%, with revenue up 19.5% to $7.88 billion. Retail used vehicle unit sales rose 13.8%, and average selling price climbed 6.3%. This strong performance pushed the stock up nearly 5% and signals robust demand and pricing power.

    This is the biggest new event this period, directly driving the stock higher and showing fundamental strength.

  • Third Round of Corporate Layoffs in 12 Months CarMax cut corporate jobs for the third time in a year to save $200 million annually amid higher interest rates. While cost cuts can boost profits, repeated layoffs may hurt morale and signal ongoing pressure, potentially weighing on the stock.

    This is a new negative development that could offset earnings optimism and reflects the company's cost-cutting drive.

  • Legal Investigation into Fiduciary Duties Bernstein Liebhard is investigating potential breaches of fiduciary duty by CarMax directors and officers. This creates legal and reputational risk, which could pressure the stock if it leads to lawsuits or fines.

    This is a new negative event that adds uncertainty and could affect investor confidence.

  • AI Voice Agents Improve Customer Service CarMax deployed Sierra AI voice agents to handle inbound calls, improving resolution and reducing unresolved calls. This technology investment aims to free up associates for bigger sales tasks, potentially boosting efficiency and sales.

    This is a new positive operational improvement that could enhance customer experience and drive future growth.

August 2026
▲2▼2

CarMax Q2 Earnings Blow Past Estimates, But Layoffs and Legal Probe Loom

  • Q2 Earnings Beat and Strong Revenue Growth CarMax reported fiscal Q2 EPS of $1.16, beating estimates by 70.6%, with revenue up 19.5% to $7.88 billion. Retail used vehicle unit sales rose 13.8%, and average selling price climbed 6.3%. This strong performance pushed the stock up nearly 5% and signals robust demand and pricing power.

    This is the biggest new event this period, directly driving the stock higher and showing fundamental strength.

  • Third Round of Corporate Layoffs in 12 Months CarMax cut corporate jobs for the third time in a year to save $200 million annually amid higher interest rates. While cost cuts can boost profits, repeated layoffs may hurt morale and signal ongoing pressure, potentially weighing on the stock.

    This is a new negative development that could offset earnings optimism and reflects the company's cost-cutting drive.

  • Legal Investigation into Fiduciary Duties Bernstein Liebhard is investigating potential breaches of fiduciary duty by CarMax directors and officers. This creates legal and reputational risk, which could pressure the stock if it leads to lawsuits or fines.

    This is a new negative event that adds uncertainty and could affect investor confidence.

  • AI Voice Agents Improve Customer Service CarMax deployed Sierra AI voice agents to handle inbound calls, improving resolution and reducing unresolved calls. This technology investment aims to free up associates for bigger sales tasks, potentially boosting efficiency and sales.

    This is a new positive operational improvement that could enhance customer experience and drive future growth.

Latest
▲2▼2

CarMax Q2 Earnings Blow Past Estimates, But Layoffs and Legal Probe Loom

  • Q2 Earnings Beat and Strong Revenue Growth CarMax reported fiscal Q2 EPS of $1.16, beating estimates by 70.6%, with revenue up 19.5% to $7.88 billion. Retail used vehicle unit sales rose 13.8%, and average selling price climbed 6.3%. This strong performance pushed the stock up nearly 5% and signals robust demand and pricing power.

    This is the biggest new event this period, directly driving the stock higher and showing fundamental strength.

  • Third Round of Corporate Layoffs in 12 Months CarMax cut corporate jobs for the third time in a year to save $200 million annually amid higher interest rates. While cost cuts can boost profits, repeated layoffs may hurt morale and signal ongoing pressure, potentially weighing on the stock.

    This is a new negative development that could offset earnings optimism and reflects the company's cost-cutting drive.

  • Legal Investigation into Fiduciary Duties Bernstein Liebhard is investigating potential breaches of fiduciary duty by CarMax directors and officers. This creates legal and reputational risk, which could pressure the stock if it leads to lawsuits or fines.

    This is a new negative event that adds uncertainty and could affect investor confidence.

  • AI Voice Agents Improve Customer Service CarMax deployed Sierra AI voice agents to handle inbound calls, improving resolution and reducing unresolved calls. This technology investment aims to free up associates for bigger sales tasks, potentially boosting efficiency and sales.

    This is a new positive operational improvement that could enhance customer experience and drive future growth.

Q2 2026
▲2▼2

CarMax's earnings beat marred by margin and credit worries, but analysts upgrade

  • Margin compression persists Gross profit per retail used vehicle fell $230 to $2,177 as CarMax cut prices to boost sales. This squeezes profit per car and worries investors that earnings growth may be hard to sustain.

    Margin pressure is a key reason the stock initially dropped despite an earnings beat.

  • Credit quality concerns at CarMax Auto Finance CarMax Auto Finance income slipped 1% to $140.2 million, and loan penetration rose to 43.3% from 41.8%. More loans to less-creditworthy buyers could lead to higher delinquencies, a risk if the economy weakens.

    Credit risk is a major overhang on CarMax's earnings and was cited as a reason for the stock's decline.

  • Earnings beat and cost cuts show progress CarMax reported adjusted EPS of $1.31, well above the $0.95 expected, and revenue rose 6.2% to $8.01 billion. Cost cuts are on track to save $200 million by fiscal 2027, supporting future profits.

    The strong earnings beat and cost-cutting progress are key positives that initially lifted shares and later fueled analyst upgrades.

  • Analyst upgrades and price target hikes After earnings, Stephens upgraded CarMax to overweight and raised its target to $66 from $43. Baird also hiked its target to $55. These votes of confidence helped the stock rebound 13% on Thursday.

    Analyst upgrades directly drove the sharp rebound in CarMax's stock price the day after earnings.

June 2026
▲2▼2

CarMax's earnings beat marred by margin and credit worries, but analysts upgrade

  • Margin compression persists Gross profit per retail used vehicle fell $230 to $2,177 as CarMax cut prices to boost sales. This squeezes profit per car and worries investors that earnings growth may be hard to sustain.

    Margin pressure is a key reason the stock initially dropped despite an earnings beat.

  • Credit quality concerns at CarMax Auto Finance CarMax Auto Finance income slipped 1% to $140.2 million, and loan penetration rose to 43.3% from 41.8%. More loans to less-creditworthy buyers could lead to higher delinquencies, a risk if the economy weakens.

    Credit risk is a major overhang on CarMax's earnings and was cited as a reason for the stock's decline.

  • Earnings beat and cost cuts show progress CarMax reported adjusted EPS of $1.31, well above the $0.95 expected, and revenue rose 6.2% to $8.01 billion. Cost cuts are on track to save $200 million by fiscal 2027, supporting future profits.

    The strong earnings beat and cost-cutting progress are key positives that initially lifted shares and later fueled analyst upgrades.

  • Analyst upgrades and price target hikes After earnings, Stephens upgraded CarMax to overweight and raised its target to $66 from $43. Baird also hiked its target to $55. These votes of confidence helped the stock rebound 13% on Thursday.

    Analyst upgrades directly drove the sharp rebound in CarMax's stock price the day after earnings.

▲2▼2

CarMax's earnings beat marred by margin and credit worries, but analysts upgrade

  • Margin compression persists Gross profit per retail used vehicle fell $230 to $2,177 as CarMax cut prices to boost sales. This squeezes profit per car and worries investors that earnings growth may be hard to sustain.

    Margin pressure is a key reason the stock initially dropped despite an earnings beat.

  • Credit quality concerns at CarMax Auto Finance CarMax Auto Finance income slipped 1% to $140.2 million, and loan penetration rose to 43.3% from 41.8%. More loans to less-creditworthy buyers could lead to higher delinquencies, a risk if the economy weakens.

    Credit risk is a major overhang on CarMax's earnings and was cited as a reason for the stock's decline.

  • Earnings beat and cost cuts show progress CarMax reported adjusted EPS of $1.31, well above the $0.95 expected, and revenue rose 6.2% to $8.01 billion. Cost cuts are on track to save $200 million by fiscal 2027, supporting future profits.

    The strong earnings beat and cost-cutting progress are key positives that initially lifted shares and later fueled analyst upgrades.

  • Analyst upgrades and price target hikes After earnings, Stephens upgraded CarMax to overweight and raised its target to $66 from $43. Baird also hiked its target to $55. These votes of confidence helped the stock rebound 13% on Thursday.

    Analyst upgrades directly drove the sharp rebound in CarMax's stock price the day after earnings.

Lithia Motors Inc (LAD)

Q3 2026
▲3

Lithia posts record Q2, raises dividend, buys and sells stores

  • Record Q2 and bigger dividend Lithia reported record quarterly revenue of $9.8 billion, earnings per share up 17%, and raised its dividend 23% to $0.70. It also bought back $242 million of stock and added $500 million to its repurchase plan. More profit returned to shareholders supports the stock.

    The quarter's results and shareholder payouts are the core new financial facts driving the stock.

  • Ford recalls bring service profit Ford recalled about 950,000 Broncos and Explorers. Lithia has the widest U.S. franchise reach and over $1 billion in quarterly parts-and-service revenue at nearly 59% gross margin, so recall repairs can add steady, high-margin aftersales profit.

    Recall-driven service traffic is a concrete new demand tailwind for Lithia's highest-margin business.

  • Texas store added, LA stores sold Lithia bought Rockwall Hyundai in Texas, adding about $75 million in yearly revenue and lifting 2026 acquisition revenue to $915 million. It also sold its two Downtown LA Audi and Volkswagen stores, trimming a property built for three franchises.

    These deals show Lithia still growing through purchases while pruning weaker real estate.

  • Ex-Toyota finance chief hired Lithia named Scott Cooke, former head of Toyota Financial Services, to run Driveway Finance and some regional stores. His finance experience could help scale Lithia's lending arm, but profits and margins are still trending lower and acquisitions may not pay off as hoped.

    The hire is a real positive, but the article flags the offsetting risk that growth is not yet translating into better margins.

August 2026
▲3

Lithia posts record Q2, raises dividend, buys and sells stores

  • Record Q2 and bigger dividend Lithia reported record quarterly revenue of $9.8 billion, earnings per share up 17%, and raised its dividend 23% to $0.70. It also bought back $242 million of stock and added $500 million to its repurchase plan. More profit returned to shareholders supports the stock.

    The quarter's results and shareholder payouts are the core new financial facts driving the stock.

  • Ford recalls bring service profit Ford recalled about 950,000 Broncos and Explorers. Lithia has the widest U.S. franchise reach and over $1 billion in quarterly parts-and-service revenue at nearly 59% gross margin, so recall repairs can add steady, high-margin aftersales profit.

    Recall-driven service traffic is a concrete new demand tailwind for Lithia's highest-margin business.

  • Texas store added, LA stores sold Lithia bought Rockwall Hyundai in Texas, adding about $75 million in yearly revenue and lifting 2026 acquisition revenue to $915 million. It also sold its two Downtown LA Audi and Volkswagen stores, trimming a property built for three franchises.

    These deals show Lithia still growing through purchases while pruning weaker real estate.

  • Ex-Toyota finance chief hired Lithia named Scott Cooke, former head of Toyota Financial Services, to run Driveway Finance and some regional stores. His finance experience could help scale Lithia's lending arm, but profits and margins are still trending lower and acquisitions may not pay off as hoped.

    The hire is a real positive, but the article flags the offsetting risk that growth is not yet translating into better margins.

Latest
▲3

Lithia posts record Q2, raises dividend, buys and sells stores

  • Record Q2 and bigger dividend Lithia reported record quarterly revenue of $9.8 billion, earnings per share up 17%, and raised its dividend 23% to $0.70. It also bought back $242 million of stock and added $500 million to its repurchase plan. More profit returned to shareholders supports the stock.

    The quarter's results and shareholder payouts are the core new financial facts driving the stock.

  • Ford recalls bring service profit Ford recalled about 950,000 Broncos and Explorers. Lithia has the widest U.S. franchise reach and over $1 billion in quarterly parts-and-service revenue at nearly 59% gross margin, so recall repairs can add steady, high-margin aftersales profit.

    Recall-driven service traffic is a concrete new demand tailwind for Lithia's highest-margin business.

  • Texas store added, LA stores sold Lithia bought Rockwall Hyundai in Texas, adding about $75 million in yearly revenue and lifting 2026 acquisition revenue to $915 million. It also sold its two Downtown LA Audi and Volkswagen stores, trimming a property built for three franchises.

    These deals show Lithia still growing through purchases while pruning weaker real estate.

  • Ex-Toyota finance chief hired Lithia named Scott Cooke, former head of Toyota Financial Services, to run Driveway Finance and some regional stores. His finance experience could help scale Lithia's lending arm, but profits and margins are still trending lower and acquisitions may not pay off as hoped.

    The hire is a real positive, but the article flags the offsetting risk that growth is not yet translating into better margins.