09:07 AM EDT, 04/10/2025 (MT Newswires) -- CarMax's ( KMX ) fiscal fourth-quarter earnings rose sharply year over year but missed Wall Street expectations, while the company suspended the timeframes related to its long-term objectives due to macro uncertainties.

The used-car retailer's earnings jumped 81% year over year to $0.58 a share for the quarter ended February, but trailed the FactSet-polled consensus of $0.66. The company saw a $0.06 impact in the quarter from the $12 million Edmunds non-cash lease impairment expense. Sales and operating revenue inclined 6.7% year over year to $6 billion, largely in line with the Street's view.

"We are pleased with the continuing momentum across our diversified business during the fourth quarter," Chief Executive Bill Nash said in a statement. An increase in unit sales and buys, "strong" gross profit growth and ongoing management of expenses, among other factors, helped drive the EPS growth, according to Nash.

CarMax ( KMX ) said it is removing the timeframes associated with its long-term goals despite making progress on them because of the potential impact of broader macro factors. Shares of the company fell 7.2% in premarket activity.

"We continue to believe tariffs will prove to be a mixed bag for CarMax ( KMX ), as higher new vehicle prices may initially boost used vehicle sales, but as used prices also rise, we think more potential buyers will fall out of the pool and focus on repairing their current vehicle," Truist Securities said in a client note.

Revenue from retail used-vehicle sales climbed 7.5% to $4.84 billion, while wholesale revenue rose 3.5% to $1.01 billion. Comparable-store sales for used vehicles advanced 5.1%, below the 6.4% increase modeled by analysts.

Retail used unit sales increased 6.2% to 182,655 vehicles while wholesale volume moved 3.1% higher to 119,156 vehicles. CarMax ( KMX ) bought 269,000 vehicles from consumers and dealers in the quarter, up 15% on a yearly basis.

The company anticipates double-digit EPS growth for "years to come" and said it's in a position to achieve continuous gains in retail and wholesale unit sales.

For fiscal 2026, CarMax ( KMX ) plans to open stores in six locations and expects capital expenditures of about $575 million, compared with the $467.9 million recorded in the previous fiscal year. The annual increase is mainly driven by land purchase timings that were pushed to the current fiscal year from fiscal 2025, the company said.