What is Wedbush's Forecast for CarMax FY2026 Earnings?

Key Points

• Wedbush Analysts have raised their FY2026 earnings estimate for CarMax to $3.60 per share, up from a previous estimate of $3.58, while maintaining a "Neutral" rating and a $54.00 price target on the stock.
• CarMax's recent quarter showed disappointing results, with earnings per share of $0.64, missing the consensus estimate of $1.03, and revenue of $6.59 billion falling short of expectations.
• Various investment firms have adjusted their ratings and price targets for CarMax, with Needham lowering its target from $92.00 to $60.00 and BNP Paribas Exane dropping theirs from $52.00 to $35.00.

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at Wedbush increased their FY2026 earnings estimates for CarMax in a report issued on Thursday, October 16th. Wedbush analyst S. Devitt now expects that the company will earn $3.60 per share for the year, up from their prior estimate of $3.58. Wedbush currently has a "Neutral" rating and a $54.00 price target on the stock. The consensus estimate for CarMax's current full-year earnings is $3.23 per share.

KMX has been the topic of several other reports. Needham & Company LLC dropped their price target on shares of CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, September 26th. Seaport Res Ptn lowered shares of CarMax from a "strong-buy" rating to a "hold" rating in a research note on Sunday, September 28th. Royal Bank Of Canada dropped their price target on shares of CarMax from $81.00 to $59.00 and set an "outperform" rating on the stock in a research note on Friday, September 26th. Evercore ISI reiterated an "in-line" rating and issued a $52.00 price target (down from $80.00) on shares of CarMax in a research note on Friday, September 26th. Finally, BNP Paribas Exane decreased their price objective on CarMax from $52.00 to $35.00 and set an "underperform" rating for the company in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $51.75.

CarMax Stock Performance

Shares of CarMax stock opened at $42.91 on Monday. The firm has a market capitalization of $6.30 billion, a P/E ratio of 12.58, a P/E/G ratio of 0.82 and a beta of 1.27. CarMax has a 52 week low of $42.43 and a 52 week high of $91.25. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The firm's 50 day moving average is $54.47 and its two-hundred day moving average is $61.59.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The business's revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.85 earnings per share.

Institutional Investors Weigh In On CarMax

Several large investors have recently modified their holdings of KMX. Norges Bank acquired a new stake in shares of CarMax during the second quarter worth $208,144,000. AQR Capital Management LLC lifted its holdings in shares of CarMax by 195.3% during the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company's stock worth $298,107,000 after purchasing an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of CarMax by 1,410.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company's stock worth $136,350,000 after purchasing an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of CarMax by 795.5% during the second quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company's stock worth $124,097,000 after purchasing an additional 1,640,219 shares during the period. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings in shares of CarMax by 626.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after purchasing an additional 778,652 shares during the period.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.

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