← CarMax overview

CarMax vs AutoZone: why the prices moved differently

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

CarMax Inc (KMX)

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.

Latest
▲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.

AutoZone Inc (AZO)

Q3 2026
▼2▲1

AutoZone's DIY slump and rival consolidation overshadow solid Q4 earnings

  • O'Reilly's reported bid for Genuine Parts' auto unit O'Reilly reportedly offered about $10 billion for Genuine Parts' auto parts division, which would create a much bigger rival. AutoZone shares fell 5.5% on the news as investors worried about tougher competition in stores and among professional customers.

    This is the main new competitive threat that pushed AZO to a 52-week low.

  • Advance Auto Parts' weak sales signal softer DIY demand Advance Auto Parts missed revenue and posted negative same-store sales, sending its stock down 21% and dragging AutoZone down 4%. The read-through is that do-it-yourself customers are pulling back as household budgets tighten, a worry for AutoZone's core retail business.

    It shows a sector-wide demand problem that hit AZO even without its own bad results.

  • Q4 earnings: profit beat, revenue miss, DIY weak but commercial strong AutoZone's fiscal Q4 EPS rose 15.1% to $56.05 and beat estimates, but revenue of $6.59 billion missed by about 1.6%. Same-store sales rose only 2.7%, with domestic DIY down 0.6% while commercial sales jumped 8.6%, showing growth is coming from professional customers, not everyday shoppers.

    This is the key new company-specific result that explains the mixed stock reaction.

  • Record full-year sales and aggressive store expansion Full-year sales rose 7.4% to a record $20.3 billion, and AutoZone opened 374 stores, its most ever, including 175 in Q4. Management expects sales to accelerate in fiscal 2027 and plans about 400 more store openings, signaling confidence despite the soft DIY trend.

    It is the main positive counterweight showing the long-term growth engine is still running.

August 2026
▼2▲1

AutoZone's DIY slump and rival consolidation overshadow solid Q4 earnings

  • O'Reilly's reported bid for Genuine Parts' auto unit O'Reilly reportedly offered about $10 billion for Genuine Parts' auto parts division, which would create a much bigger rival. AutoZone shares fell 5.5% on the news as investors worried about tougher competition in stores and among professional customers.

    This is the main new competitive threat that pushed AZO to a 52-week low.

  • Advance Auto Parts' weak sales signal softer DIY demand Advance Auto Parts missed revenue and posted negative same-store sales, sending its stock down 21% and dragging AutoZone down 4%. The read-through is that do-it-yourself customers are pulling back as household budgets tighten, a worry for AutoZone's core retail business.

    It shows a sector-wide demand problem that hit AZO even without its own bad results.

  • Q4 earnings: profit beat, revenue miss, DIY weak but commercial strong AutoZone's fiscal Q4 EPS rose 15.1% to $56.05 and beat estimates, but revenue of $6.59 billion missed by about 1.6%. Same-store sales rose only 2.7%, with domestic DIY down 0.6% while commercial sales jumped 8.6%, showing growth is coming from professional customers, not everyday shoppers.

    This is the key new company-specific result that explains the mixed stock reaction.

  • Record full-year sales and aggressive store expansion Full-year sales rose 7.4% to a record $20.3 billion, and AutoZone opened 374 stores, its most ever, including 175 in Q4. Management expects sales to accelerate in fiscal 2027 and plans about 400 more store openings, signaling confidence despite the soft DIY trend.

    It is the main positive counterweight showing the long-term growth engine is still running.

Latest
▼2▲1

AutoZone's DIY slump and rival consolidation overshadow solid Q4 earnings

  • O'Reilly's reported bid for Genuine Parts' auto unit O'Reilly reportedly offered about $10 billion for Genuine Parts' auto parts division, which would create a much bigger rival. AutoZone shares fell 5.5% on the news as investors worried about tougher competition in stores and among professional customers.

    This is the main new competitive threat that pushed AZO to a 52-week low.

  • Advance Auto Parts' weak sales signal softer DIY demand Advance Auto Parts missed revenue and posted negative same-store sales, sending its stock down 21% and dragging AutoZone down 4%. The read-through is that do-it-yourself customers are pulling back as household budgets tighten, a worry for AutoZone's core retail business.

    It shows a sector-wide demand problem that hit AZO even without its own bad results.

  • Q4 earnings: profit beat, revenue miss, DIY weak but commercial strong AutoZone's fiscal Q4 EPS rose 15.1% to $56.05 and beat estimates, but revenue of $6.59 billion missed by about 1.6%. Same-store sales rose only 2.7%, with domestic DIY down 0.6% while commercial sales jumped 8.6%, showing growth is coming from professional customers, not everyday shoppers.

    This is the key new company-specific result that explains the mixed stock reaction.

  • Record full-year sales and aggressive store expansion Full-year sales rose 7.4% to a record $20.3 billion, and AutoZone opened 374 stores, its most ever, including 175 in Q4. Management expects sales to accelerate in fiscal 2027 and plans about 400 more store openings, signaling confidence despite the soft DIY trend.

    It is the main positive counterweight showing the long-term growth engine is still running.

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