Analysts Issue Forecasts for CarMax's Q2 Earnings (NYSE:KMX)

Key Points

• William Blair has lowered its earnings per share estimate for CarMax's Q2 2026 from $1.05 to $1.01, impacting the overall earnings outlook for the company.
• Various analysts have adjusted their target prices for CarMax, with Stephens reducing its price objective from $81.00 to $74.00, while JPMorgan has raised its target from $58.00 to $65.00.
• As of now, CarMax has received a consensus rating of "Moderate Buy" from analysts, with an average price target of $81.50.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at William Blair decreased their Q2 2026 earnings per share (EPS) estimates for shares of CarMax in a report issued on Wednesday, September 17th. William Blair analyst S. Zackfia now anticipates that the company will earn $1.01 per share for the quarter, down from their previous estimate of $1.05. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax's Q3 2026 earnings at $0.97 EPS, FY2026 earnings at $3.99 EPS and FY2027 earnings at $4.74 EPS.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Friday, June 20th. The company reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.18 by $0.20. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The business had revenue of $7.55 billion during the quarter, compared to analysts' expectations of $7.58 billion. During the same quarter in the prior year, the business posted $0.97 earnings per share. CarMax's revenue was up 6.1% compared to the same quarter last year.

Other research analysts have also recently issued reports about the stock. Truist Financial lifted their price objective on shares of CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Stephens decreased their target price on CarMax from $81.00 to $74.00 and set an "overweight" rating on the stock in a research report on Monday, September 15th. Royal Bank Of Canada increased their target price on shares of CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a report on Monday, June 23rd. Evercore ISI decreased their price target on shares of CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Finally, JPMorgan Chase & Co. raised their target price on shares of CarMax from $58.00 to $65.00 and gave the company a "neutral" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, CarMax currently has a consensus rating of "Moderate Buy" and an average price target of $81.50.

CarMax Price Performance

Shares of NYSE:KMX traded down $0.23 during midday trading on Friday, hitting $58.20. The stock had a trading volume of 3,000,014 shares, compared to its average volume of 2,910,577. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86. The company has a market capitalization of $8.73 billion, a P/E ratio of 16.08, a price-to-earnings-growth ratio of 0.95 and a beta of 1.35. The company's 50-day moving average price is $59.63 and its 200-day moving average price is $65.44. CarMax has a fifty-two week low of $54.53 and a fifty-two week high of $91.25.

Institutional Investors Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the business. Zions Bancorporation National Association UT acquired a new stake in shares of CarMax during the 1st quarter worth approximately $27,000. CYBER HORNET ETFs LLC bought a new position in shares of CarMax during the 2nd quarter worth about $28,000. Accent Capital Management LLC acquired a new stake in shares of CarMax in the 1st quarter valued at about $34,000. MUFG Securities EMEA plc bought a new stake in CarMax in the 2nd quarter valued at about $30,000. Finally, Strengthening Families & Communities LLC raised its stake in CarMax by 93.1% during the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after buying an additional 256 shares during the period.

Insider Transactions at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction on 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 owned 2,779 shares of the company's stock, valued at approximately $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.70% of the stock is currently owned by insiders.

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.