Zacks Research Has Bullish Forecast for CarMax Q4 Earnings

Key Points

• Zacks Research sharply raised its Q4 2027 EPS estimate for CarMax to $0.23 (from $0.05) and boosted FY2028 and FY2029 forecasts to $3.09 and $3.96, while maintaining a "Hold" rating.
• CarMax recently reported a quarterly beat with $0.34 EPS versus $0.22 expected and revenue of $5.95 billion versus $5.65 billion forecast.
• Analyst sentiment remains mixed—MarketBeat shows an average rating of "Reduce" with a consensus target of $41.21—and a Pomerantz investor probe introduces additional legal uncertainty.

CarMax, Inc. (NYSE:KMX - Free Report) - Stock analysts at Zacks Research increased their Q4 2027 earnings per share estimates for shares of CarMax in a research note issued on Tuesday, April 28th. Zacks Research analyst Team now forecasts that the company will earn $0.23 per share for the quarter, up from their previous estimate of $0.05. Zacks Research has a "Hold" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $2.41 per share. Zacks Research also issued estimates for CarMax's Q2 2028 earnings at $0.87 EPS, Q3 2028 earnings at $0.69 EPS, Q4 2028 earnings at $0.40 EPS, FY2028 earnings at $3.09 EPS and FY2029 earnings at $3.96 EPS.

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

Other equities research analysts have also issued reports about the stock. Barclays decreased their target price on shares of CarMax from $28.00 to $26.00 and set an "underweight" rating for the company in a research note on Thursday, April 16th. Robert W. Baird boosted their target price on shares of CarMax from $44.00 to $48.00 and gave the company an "outperform" rating in a research note on Wednesday, February 18th. Evercore set a $45.00 target price on shares of CarMax in a research note on Friday, April 10th. Stephens boosted their target price 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. Finally, Bank of America initiated coverage on shares of CarMax in a research note on Wednesday, April 15th. They set an "underperform" rating and a $40.00 target price for the company. One investment analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, CarMax presently has an average rating of "Reduce" and a consensus target price of $41.21.

CarMax Stock Performance

KMX stock opened at $38.30 on Thursday. The stock has a market capitalization of $5.43 billion, a PE ratio of 23.94, a price-to-earnings-growth ratio of 1.38 and a beta of 1.30. CarMax has a 12-month low of $30.26 and a 12-month high of $71.99. The company has a current ratio of 2.20, a quick ratio of 0.49 and a debt-to-equity ratio of 2.93. The stock's 50 day simple moving average is $41.87 and its 200 day simple moving average is $41.55.

Institutional Investors Weigh In On CarMax

Hedge funds and other institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC purchased a new stake in shares of CarMax in the 2nd quarter worth $28,000. MUFG Securities EMEA plc purchased a new stake in shares of CarMax in the 2nd quarter worth $30,000. Huntington National Bank increased its stake in shares of CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after purchasing an additional 265 shares in the last quarter. Center for Financial Planning Inc. purchased a new stake in CarMax in the 3rd quarter worth $31,000. Finally, Advisory Services Network LLC purchased a new stake in CarMax in the 3rd quarter worth $32,000.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks bumped several forward-year and 2028-quarter EPS targets — notably FY2028 to $3.09 (from $2.57) and FY2029 to $3.96, and raised Q2, Q3 and Q4 2028 quarter estimates — implying a stronger medium‑term earnings outlook. (No direct link provided)
• Neutral Sentiment: Zacks maintained a "Hold" rating while updating estimates, so these revisions are informative but not a change in analyst conviction. (No direct link provided)
• Neutral Sentiment: Media roundup: a Globe and Mail piece highlights mixed analyst opinions on consumer‑cyclical names including CarMax, underscoring divergent views on near‑term demand and valuation. Analysts’ Opinions Are Mixed on These Consumer Cyclical Stocks
• Negative Sentiment: Zacks trimmed several 2027 near‑term estimates (Q1, Q2, Q3 and FY2027 were lowered modestly), signaling some expected weakness or slower recovery in the nearer term versus prior forecasts. (No direct link provided)
• Negative Sentiment: Legal overhang: Pomerantz LLP launched an investor probe into CarMax, which can increase uncertainty, potential litigation costs and sentiment pressure until resolved. Pomerantz Law Firm Investigates Claims On Behalf of Investors of CarMax

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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