Zacks Research Predicts CarMax's FY2026 Earnings (NYSE:KMX)

Key Points

• Zacks Research has reduced its FY2026 earnings per share estimate for CarMax from $3.78 to $3.28, maintaining a "Strong Sell" rating on the stock.
• In the latest quarterly report, CarMax reported earnings of $0.64 per share, missing the consensus estimate of $1.03, with quarterly revenue down 6.0% year-over-year.
• Analysts are revising their ratings and price targets for CarMax, with opinions ranging from "Strong Buy" to "Sell," and the average price target now stands at $54.42.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Zacks Research dropped their FY2026 earnings per share estimates for CarMax in a report issued on Wednesday, October 8th. Zacks Research analyst Team now forecasts that the company will post earnings of $3.28 per share for the year, down from their previous estimate of $3.78. 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.

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

Other equities analysts have also recently issued reports about the company. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of CarMax in a report on Saturday, September 27th. Royal Bank Of Canada dropped their price target on CarMax from $81.00 to $59.00 and set an "outperform" rating for the company in a research report on Friday, September 26th. Wedbush downgraded CarMax from an "outperform" rating to a "neutral" rating and dropped their price target for the stock from $84.00 to $54.00 in a research report on Thursday, September 25th. Seaport Res Ptn downgraded CarMax from a "strong-buy" rating to a "hold" rating in a research report on Sunday, September 28th. Finally, BNP Paribas Exane dropped their price target on CarMax from $52.00 to $35.00 and set an "underperform" rating for the company in a research report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $54.42.

CarMax Stock Performance

Shares of KMX stock opened at $44.04 on Friday. The stock has a fifty day moving average price of $55.91 and a 200 day moving average price of $63.21. The stock has a market cap of $6.47 billion, a PE ratio of 12.91, a P/E/G ratio of 0.83 and a beta of 1.27. CarMax has a 1 year low of $42.75 and a 1 year high of $91.25. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46.

Institutional Investors Weigh In On CarMax

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bartlett & CO. Wealth Management LLC grew its position in shares of CarMax by 99.6% in the third quarter. Bartlett & CO. Wealth Management LLC now owns 1,687 shares of the company's stock valued at $76,000 after purchasing an additional 842 shares during the period. Franklin Street Advisors Inc. NC grew its position in CarMax by 18.6% during the third quarter. Franklin Street Advisors Inc. NC now owns 5,241 shares of the company's stock valued at $235,000 after acquiring an additional 823 shares during the period. Voya Investment Management LLC grew its position in CarMax by 13.0% during the third quarter. Voya Investment Management LLC now owns 104,305 shares of the company's stock valued at $4,680,000 after acquiring an additional 12,034 shares during the period. Czech National Bank grew its position in CarMax by 2.4% during the third quarter. Czech National Bank now owns 38,116 shares of the company's stock valued at $1,710,000 after acquiring an additional 880 shares during the period. Finally, Sendero Wealth Management LLC purchased a new stake in CarMax during the third quarter valued at about $218,000.

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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