On September 29, CarMax rose 7.2% in regular trading, trading at $61.5 per share with turnover of approximately $65.96 million. The rally was driven by a strong fiscal Q2 earnings report released pre-market that substantially exceeded Wall Street expectations, coupled with the announcement of a share repurchase resumption plan.

Specifically, CarMax posted fiscal Q2 adjusted earnings per share of $1.16, far surpassing the FactSet consensus estimate of $0.80 and nearly doubling the $0.64 reported in the year-ago quarter. Net sales and operating revenue reached $7.88 billion, up 19.5% year-over-year and well above the $7.09 billion analysts had projected. Retail used-vehicle unit sales rose 13.8% year-over-year, signaling a meaningful recovery in consumer demand. The company also announced plans to resume stock repurchases at a modest level during fiscal Q3, further boosting investor sentiment.

Notably, prior to the earnings release, analyst consensus had been cautious, with multiple institutions holding neutral-to-underperform ratings and price targets ranging from $37 to $42. The company had also recently completed a third round of layoffs, cutting approximately 4% of corporate staff amid soft auto demand, which had contributed to a conservative outlook heading into the report.

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