Zacks Research Comments on CarMax’s Q2 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Stock analysts at Zacks Research lowered their Q2 2027 earnings per share estimates for shares of CarMax in a report released on Tuesday, January 6th. Zacks Research analyst Team now anticipates that the company will earn $0.86 per share for the quarter, down from their previous forecast of $0.89. Zacks Research has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q1 2028 earnings at $1.31 EPS.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.11. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The business had revenue of $5.79 billion during the quarter, compared to analyst estimates of $5.66 billion. During the same period in the previous year, the company earned $0.81 EPS. The firm’s revenue was down 6.9% on a year-over-year basis.

KMX has been the topic of a number of other research reports. Morgan Stanley set a $35.00 price target on shares of CarMax in a report on Monday, December 8th. Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a research report on Tuesday, October 14th. Evercore ISI restated a “reduce” rating and set a $36.00 target price on shares of CarMax in a report on Friday, December 19th. William Blair cut CarMax from an “outperform” rating to a “market perform” rating in a research report on Thursday, November 6th. Finally, Oppenheimer reiterated a “market perform” rating on shares of CarMax in a research note on Friday, September 26th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat, CarMax has an average rating of “Reduce” and a consensus price target of $39.36.

CarMax Price Performance

NYSE KMX opened at $43.23 on Thursday. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. The stock has a market capitalization of $6.13 billion, a PE ratio of 14.27, a price-to-earnings-growth ratio of 0.98 and a beta of 1.29. The company has a 50 day moving average price of $38.15 and a two-hundred day moving average price of $50.32. CarMax has a 12-month low of $30.26 and a 12-month high of $89.47.

Institutional Investors Weigh In On CarMax

Several hedge funds and other institutional investors have recently made changes to their positions in the business. CYBER HORNET ETFs LLC bought a new position in shares of CarMax in the second quarter worth about $28,000. MUFG Securities EMEA plc acquired a new stake in CarMax in the 2nd quarter valued at approximately $30,000. Center for Financial Planning Inc. acquired a new stake in CarMax in the 3rd quarter valued at approximately $31,000. Advisory Services Network LLC bought a new position in CarMax in the 3rd quarter worth approximately $32,000. Finally, Strengthening Families & Communities LLC lifted its holdings in shares of CarMax by 220.0% during the third quarter. Strengthening Families & Communities LLC now owns 880 shares of the company’s stock worth $39,000 after buying an additional 605 shares during the last quarter.

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.