William Blair Analysts Reduce Earnings Estimates for CarMax

Key Points

• William Blair analysts have reduced their Q4 2026 earnings estimates for CarMax from $0.63 to $0.55 per share, reflecting weaker expectations for the company.
• CarMax recently reported earnings per share of $0.64 for the quarter, which was below analysts' consensus estimate of $1.03, along with revenues of $6.59 billion compared to expectations of $7.07 billion.
• The stock has faced multiple downgrades from various research firms, with target prices being cut significantly, indicating increased bearish sentiment towards CarMax's stock performance.

CarMax, Inc. (NYSE:KMX - Free Report) - Stock analysts at William Blair dropped their Q4 2026 earnings estimates for CarMax in a research note issued on Thursday, September 25th. William Blair analyst S. Zackfia now expects that the company will post earnings per share of $0.55 for the quarter, down from their prior forecast of $0.63. The consensus estimate for CarMax's current full-year earnings is $3.23 per share.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly 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). The firm had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The company's revenue for the quarter was down 6.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.85 earnings per share.

Several other research firms have also recently commented on KMX. Truist Financial cut their price objective on shares of CarMax from $74.00 to $47.00 and set a "hold" rating on the stock in a research report on Friday. Needham & Company LLC cut their price objective on shares of CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday. Wedbush cut shares of CarMax from an "outperform" rating to a "neutral" rating and cut their price objective for the company from $84.00 to $54.00 in a research report on Thursday. BNP Paribas Exane cut their price objective on shares of CarMax from $52.00 to $35.00 and set an "underperform" rating on the stock in a research report on Friday. Finally, Morgan Stanley initiated coverage on shares of CarMax in a research report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, CarMax has an average rating of "Moderate Buy" and an average target price of $63.31.

CarMax Trading Down 1.6%

KMX opened at $44.86 on Monday. The stock has a market capitalization of $6.73 billion, a P/E ratio of 13.16, a P/E/G ratio of 0.76 and a beta of 1.35. CarMax has a 12 month low of $42.75 and a 12 month high of $91.25. The firm's fifty day simple moving average is $58.59 and its 200 day simple moving average is $64.72. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87.

Insider Buying and Selling

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president directly owned 2,779 shares of the company's stock, valued at $196,308.56. The trade was a 35.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 1.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of KMX. First Hawaiian Bank increased its stake in shares of CarMax by 118.8% during the 1st quarter. First Hawaiian Bank now owns 7,307 shares of the company's stock worth $569,000 after purchasing an additional 3,968 shares during the last quarter. Central Pacific Bank Trust Division acquired a new position in shares of CarMax during the 1st quarter worth about $101,000. Versant Capital Management Inc increased its stake in shares of CarMax by 2,454.4% during the 1st quarter. Versant Capital Management Inc now owns 2,631 shares of the company's stock worth $205,000 after purchasing an additional 2,528 shares during the last quarter. GAMMA Investing LLC increased its stake in shares of CarMax by 8,675.6% during the 1st quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock worth $40,193,000 after purchasing an additional 509,952 shares during the last quarter. Finally, Parallel Advisors LLC increased its stake in shares of CarMax by 38.4% during the 1st quarter. Parallel Advisors LLC now owns 937 shares of the company's stock worth $73,000 after purchasing an additional 260 shares during the last quarter.

CarMax Company Profile

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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