Despite the beats, questions remain about the company's ability to grow and cut costs under the plan amid tougher market conditions, including margin pressure.

CarMax (KMX) will report Q1 earnings on June 17. Analysts expect EPS of 94 cents on revenue of $7.42B. Last year, it reported $7.55B in revenue.

CarMax is just in a buy zone as a key rival looks to disrupt auto sales again.