Zacks: Analysts Anticipate CarMax, Inc. (NYSE:KMX) to Announce $1.87 EPS

Wall Street brokerages expect CarMax, Inc. (NYSE:KMX) to report $1.87 earnings per share for the current quarter, Zacks reports. Four analysts have made estimates for CarMax’s earnings, with the highest EPS estimate coming in at $1.95 and the lowest estimate coming in at $1.82. CarMax posted earnings of $1.79 per share in the same quarter last year, which suggests a positive year over year growth rate of 4.5%. The business is scheduled to issue its next earnings results before the market opens on Thursday, September 30th.

On average, analysts expect that CarMax will report full year earnings of $7.49 per share for the current year, with EPS estimates ranging from $6.99 to $7.85. For the next financial year, analysts forecast that the business will post earnings of $7.40 per share, with EPS estimates ranging from $6.89 to $8.20. Zacks Investment Research’s earnings per share calculations are an average based on a survey of sell-side analysts that follow CarMax.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, June 24th. The company reported $2.63 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.63 by $1.00. The company had revenue of $7.70 billion during the quarter, compared to analysts’ expectations of $6.22 billion. CarMax had a net margin of 5.03% and a return on equity of 27.44%. CarMax’s quarterly revenue was up 138.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.03 earnings per share.

KMX has been the subject of a number of recent research reports. Robert W. Baird boosted their target price on shares of CarMax from $125.00 to $140.00 and gave the company an “outperform” rating in a research report on Monday, June 28th. JPMorgan Chase & Co. upped their price objective on shares of CarMax from $115.00 to $120.00 and gave the stock a “neutral” rating in a research report on Monday, June 28th. Stephens upped their price objective on shares of CarMax from $154.00 to $163.00 and gave the stock an “overweight” rating in a research report on Monday, June 28th. Zacks Investment Research raised shares of CarMax from a “hold” rating to a “strong-buy” rating and set a $150.00 price objective for the company in a research report on Wednesday, June 30th. Finally, Royal Bank of Canada upped their price objective on shares of CarMax from $148.00 to $160.00 and gave the stock an “outperform” rating in a research report on Monday, June 28th. Two analysts have rated the stock with a sell rating, three have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $134.29.

Shares of CarMax stock traded up $2.88 during trading on Thursday, reaching $139.69. The company’s stock had a trading volume of 1,190,744 shares, compared to its average volume of 1,134,450. The business’s 50-day moving average price is $131.44 and its 200-day moving average price is $127.71. The firm has a market cap of $22.76 billion, a PE ratio of 19.65, a P/E/G ratio of 1.04 and a beta of 1.61. CarMax has a 52 week low of $84.70 and a 52 week high of $140.24. The company has a quick ratio of 0.69, a current ratio of 2.24 and a debt-to-equity ratio of 3.22.

In other news, EVP Mohammad Shamim sold 22,434 shares of the company’s stock in a transaction that occurred on Wednesday, July 21st. The stock was sold at an average price of $135.64, for a total value of $3,042,947.76. Following the completion of the transaction, the executive vice president now owns 31,954 shares of the company’s stock, valued at $4,334,240.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CMO James Lyski sold 63,129 shares of the company’s stock in a transaction that occurred on Tuesday, August 3rd. The shares were sold at an average price of $139.54, for a total value of $8,809,020.66. Following the completion of the transaction, the chief marketing officer now directly owns 79,084 shares of the company’s stock, valued at approximately $11,035,381.36. The disclosure for this sale can be found here. Insiders sold 323,968 shares of company stock valued at $43,163,413 in the last three months. Company insiders own 1.76% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. Sei Investments Co. increased its stake in shares of CarMax by 5.7% in the second quarter. Sei Investments Co. now owns 63,011 shares of the company’s stock valued at $8,258,000 after buying an additional 3,417 shares during the period. Envestnet Asset Management Inc. increased its position in CarMax by 19.0% during the 2nd quarter. Envestnet Asset Management Inc. now owns 437,694 shares of the company’s stock valued at $56,528,000 after purchasing an additional 69,885 shares during the period. Geode Capital Management LLC increased its position in CarMax by 1.7% during the 1st quarter. Geode Capital Management LLC now owns 2,702,212 shares of the company’s stock valued at $357,499,000 after purchasing an additional 44,139 shares during the period. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. increased its position in CarMax by 13.1% during the 1st quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 53,006 shares of the company’s stock valued at $7,032,000 after purchasing an additional 6,151 shares during the period. Finally, Orion Portfolio Solutions LLC increased its position in CarMax by 47.8% during the 2nd quarter. Orion Portfolio Solutions LLC now owns 4,643 shares of the company’s stock valued at $600,000 after purchasing an additional 1,501 shares during the period. 95.40% of the stock is owned by institutional investors.

About CarMax

CarMax, Inc is a holding company, which engages in the retail of used vehicles and wholesale of vehicle auction operator. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segments. The CarMax Sales Operations segment comprises of all aspects of its auto merchandising and service operations.

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Earnings History and Estimates for CarMax (NYSE:KMX)

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