CarMax Posts $(0.85) EPS Loss on Impairment, Names New CEO, Pauses Buybacks
KMX sits 50% above its 52-week low of $30.26 on elevated volume (2.0× avg).
Summary
CarMax reported Q4 fiscal 2026 results, posting $5.95 billion in revenue, $605.3 million in gross profit, and a net loss of $(0.85) per diluted share. This significant loss includes a $141.3 million non-cash goodwill impairment. The company also announced the appointment of Keith Barr as its new President and CEO, effective March 16, 2026, and increased its targeted SG&A exit-rate savings to $200 million by the end of fiscal 2027. Furthermore, CarMax paused share repurchases after buying back $50.4 million in the quarter. The substantial net loss, coupled with a CEO change and a halt to buybacks, signals significant operational challenges and a strategic shift. Investors will closely monitor the new leadership's ability to navigate the challenging used-car market and restore profitability.
At the time of this announcement, KMX was trading at $45.53 on NYSE in the Trade & Services sector, with a market capitalization of approximately $7B. The 52-week trading range was $30.26 to $71.99. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.