What is Zacks Research's Estimate for CarMax Q1 Earnings?

Key Points

• Zacks Research lowered its Q1 2027 EPS estimate for CarMax to $0.94 from $1.03, signaling a more cautious outlook ahead of the quarter.
• The firm also cut forecasts for several later periods, including FY2027, FY2028, and FY2029, suggesting slower expected earnings momentum over the next few years.
• CarMax’s most recent results beat expectations, with quarterly EPS of $0.34 versus $0.22 expected and revenue of $5.95 billion above estimates, even as analysts overall keep a cautious stance on the stock.

CarMax, Inc. (NYSE:KMX - Free Report) - Research analysts at Zacks Research decreased their Q1 2027 EPS estimates for CarMax in a research note issued on Friday, June 12th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.94 for the quarter, down from their previous estimate of $1.03. The consensus estimate for CarMax's current full-year earnings is $2.28 per share. Zacks Research also issued estimates for CarMax's Q2 2027 earnings at $0.64 EPS, Q3 2027 earnings at $0.46 EPS, Q4 2027 earnings at $0.21 EPS, FY2027 earnings at $2.24 EPS, Q1 2028 earnings at $1.08 EPS, Q2 2028 earnings at $0.83 EPS, Q3 2028 earnings at $0.66 EPS, Q4 2028 earnings at $0.29 EPS, FY2028 earnings at $2.86 EPS, Q1 2029 earnings at $0.97 EPS and FY2029 earnings at $3.95 EPS.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.22 by $0.12. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The company had revenue of $5.95 billion for the quarter, compared to analyst estimates of $5.65 billion. During the same quarter last year, the business earned $0.58 earnings per share. CarMax's revenue was down 1.0% compared to the same quarter last year.

Several other equities research analysts have also commented on KMX. Stephens raised their price target on shares of CarMax from $39.00 to $43.00 and gave the company an "equal weight" rating in a research note on Thursday, April 2nd. Bank of America started coverage on shares of CarMax in a research note on Wednesday, April 15th. They issued an "underperform" rating and a $40.00 price target on the stock. Royal Bank Of Canada restated a "sector perform" rating and issued a $41.00 price target on shares of CarMax in a research note on Wednesday, April 15th. Weiss Ratings restated a "sell (d)" rating on shares of CarMax in a research note on Wednesday, April 8th. Finally, Argus upgraded shares of CarMax to a "hold" rating in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $41.73.

CarMax Price Performance

Shares of NYSE:KMX opened at $51.27 on Monday. The firm's 50 day moving average is $41.83 and its two-hundred day moving average is $42.19. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99. The firm has a market capitalization of $7.27 billion, a P/E ratio of 32.04, a PEG ratio of 1.95 and a beta of 1.21. The company has a current ratio of 2.20, a quick ratio of 0.49 and a debt-to-equity ratio of 2.93.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its stake in shares of CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock valued at $306,429,000 after acquiring an additional 4,780,903 shares during the period. SRS Investment Management LLC increased its stake in shares of CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock valued at $217,845,000 after acquiring an additional 5,327,603 shares during the period. Janus Henderson Group PLC increased its stake in shares of CarMax by 1.1% during the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company's stock valued at $190,471,000 after acquiring an additional 49,987 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of CarMax by 7.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company's stock valued at $177,767,000 after acquiring an additional 289,768 shares during the period. Finally, Norges Bank acquired a new position in shares of CarMax during the fourth quarter valued at approximately $159,232,000.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax posted better-than-expected quarterly results last month, reporting EPS of $0.34 versus the $0.22 consensus and revenue of $5.95 billion versus $5.65 billion expected, which supports the stock’s longer-term rebound.
• Positive Sentiment: Wall Street Zen upgraded CarMax to a "Hold" rating, which may help stabilize investor sentiment. Article Title
• Neutral Sentiment: A report questioned whether CarMax’s finance-accounting leadership shift reflects confidence in the company’s strategy, but the item does not indicate a major change in fundamentals. Article Title
• Negative Sentiment: Zacks Research lowered its EPS estimates for multiple upcoming periods, including FY2027, FY2028, FY2029, and several quarterly forecasts, signaling slower expected earnings momentum for CarMax.
• Negative Sentiment: The repeated downward revisions to future earnings expectations could weigh on valuation if investors become more cautious about CarMax’s growth trajectory.

CarMax Company Profile

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.

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