What is Zacks Research's Forecast for CarMax Q3 Earnings?

Key Points

• Zacks Research has lowered its Q3 2026 earnings per share estimate for CarMax to $0.70, down from $0.76, maintaining a "Strong Sell" rating on the stock.
• The consensus estimate for CarMax's full-year earnings is currently $3.23 per share, with various future quarterly earnings estimates also revised downwards.
• Recent research notes from other analysts show mixed ratings, with price targets for CarMax ranging from $60.00 to $78.00 amidst overall market skepticism.

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at Zacks Research dropped their Q3 2026 earnings per share (EPS) estimates for CarMax in a research report issued to clients and investors on Wednesday, October 8th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.70 for the quarter, down from their prior estimate of $0.76. Zacks Research has a "Strong Sell" 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 Q4 2026 earnings at $0.56 EPS, Q1 2027 earnings at $1.40 EPS, Q2 2027 earnings at $1.08 EPS, Q3 2027 earnings at $0.96 EPS, Q4 2027 earnings at $0.64 EPS, FY2027 earnings at $4.07 EPS, Q1 2028 earnings at $1.36 EPS, Q2 2028 earnings at $1.07 EPS and FY2028 earnings at $4.24 EPS.

A number of other research analysts have also recently commented on KMX. Mizuho reduced their price objective on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. Seaport Res Ptn lowered CarMax from a "strong-buy" rating to a "hold" rating in a research report on Sunday, September 28th. Needham & Company LLC dropped their target price on CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday, September 26th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of CarMax in a research report on Saturday, September 27th. Finally, Oppenheimer reaffirmed a "market perform" rating on shares of CarMax in a research report on Friday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $54.42.

CarMax Price Performance

Shares of CarMax stock opened at $44.34 on Thursday. The business's fifty day moving average price is $56.16 and its 200 day moving average price is $63.41. The stock has a market capitalization of $6.51 billion, a P/E ratio of 13.00, a PEG ratio of 0.84 and a beta of 1.27. CarMax has a twelve month low of $42.75 and a twelve month high of $91.25. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87.

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

Institutional Investors Weigh In On CarMax

A number of institutional investors have recently added to or reduced their stakes in KMX. Norges Bank acquired a new stake in CarMax in the second quarter worth approximately $208,144,000. AQR Capital Management LLC lifted its position in CarMax by 195.3% in 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 position in CarMax by 1,410.5% in 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 position in CarMax by 795.5% in 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 position in CarMax by 626.1% in 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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