Analysts Expect CarMax, Inc (NYSE:KMX) Will Announce Earnings of $1.11 Per Share

Wall Street brokerages expect that CarMax, Inc (NYSE:KMX) will post $1.11 earnings per share for the current quarter, according to Zacks Investment Research. Four analysts have provided estimates for CarMax’s earnings. The highest EPS estimate is $1.16 and the lowest is $1.07. CarMax posted earnings of $1.13 per share in the same quarter last year, which suggests a negative year-over-year growth rate of 1.8%. The firm is expected to issue its next earnings results on Friday, April 3rd.

On average, analysts expect that CarMax will report full year earnings of $5.21 per share for the current financial year, with EPS estimates ranging from $5.10 to $5.45. For the next financial year, analysts expect that the business will report earnings of $5.63 per share, with EPS estimates ranging from $5.39 to $5.95. Zacks Investment Research’s earnings per share averages are an average based on a survey of sell-side research firms that cover CarMax.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Friday, December 20th. The company reported $1.04 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.16 by ($0.12). The firm had revenue of $4.79 billion during the quarter, compared to analysts’ expectations of $4.62 billion. CarMax had a return on equity of 24.53% and a net margin of 4.40%. The business’s revenue for the quarter was up 11.5% on a year-over-year basis. During the same period last year, the company earned $1.09 earnings per share.

KMX has been the subject of a number of analyst reports. Oppenheimer increased their price objective on shares of CarMax from $100.00 to $118.00 and gave the stock an “outperform” rating in a research note on Monday, December 16th. Zacks Investment Research cut shares of CarMax from a “buy” rating to a “hold” rating and set a $104.00 price objective for the company. in a research note on Thursday, December 12th. Wedbush reissued a “neutral” rating and issued a $90.00 price objective (up from $80.00) on shares of CarMax in a research note on Monday, December 23rd. They noted that the move was a valuation call. Stephens reissued a “buy” rating and issued a $115.00 price objective on shares of CarMax in a research note on Thursday, January 2nd. Finally, Buckingham Research increased their price objective on shares of CarMax from $96.00 to $102.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 18th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and nine have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $104.35.

In related news, SVP Darren C. Newberry sold 24,551 shares of the firm’s stock in a transaction on Friday, October 11th. The shares were sold at an average price of $90.51, for a total transaction of $2,222,111.01. Following the completion of the transaction, the senior vice president now directly owns 7,413 shares of the company’s stock, valued at $670,950.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.09% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its stake in CarMax by 0.6% during the second quarter. Vanguard Group Inc. now owns 18,089,921 shares of the company’s stock valued at $1,570,748,000 after acquiring an additional 100,745 shares in the last quarter. Nuveen Asset Management LLC grew its stake in shares of CarMax by 10,954.6% in the 2nd quarter. Nuveen Asset Management LLC now owns 3,005,757 shares of the company’s stock worth $260,989,000 after buying an additional 2,978,567 shares in the last quarter. Holocene Advisors LP purchased a new position in shares of CarMax in the 2nd quarter worth $128,466,000. Giverny Capital Inc. grew its stake in shares of CarMax by 2.6% in the 2nd quarter. Giverny Capital Inc. now owns 1,220,105 shares of the company’s stock worth $105,942,000 after buying an additional 31,307 shares in the last quarter. Finally, Welch & Forbes LLC grew its stake in shares of CarMax by 0.6% in the 3rd quarter. Welch & Forbes LLC now owns 1,039,982 shares of the company’s stock worth $91,520,000 after buying an additional 5,719 shares in the last quarter.

Shares of NYSE KMX traded down $0.15 during midday trading on Wednesday, reaching $87.08. The stock had a trading volume of 1,639,204 shares, compared to its average volume of 1,531,761. The stock has a 50-day moving average of $94.38 and a 200-day moving average of $89.62. The company has a debt-to-equity ratio of 4.07, a quick ratio of 0.54 and a current ratio of 2.43. The company has a market capitalization of $14.31 billion, a price-to-earnings ratio of 18.18, a price-to-earnings-growth ratio of 1.33 and a beta of 1.13. CarMax has a 12-month low of $57.95 and a 12-month high of $100.49.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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