Zacks Research Weighs in on CarMax's Q2 Earnings (NYSE:KMX)

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for CarMax to $0.60 from $0.64, while the consensus full-year earnings estimate remains at $2.64 per share.
• CarMax’s latest quarterly results beat expectations, reporting $1.31 EPS versus the $0.96 consensus and revenue of $8.01 billion versus $7.42 billion expected; revenue rose 6.2% year over year.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and a price target of $47.73, though several firms recently raised price targets and insider buying has been notable.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Zacks Research dropped their Q2 2027 earnings per share estimates for CarMax in a report released on Wednesday, July 1st. Zacks Research analyst Team now anticipates that the company will post earnings per share of $0.60 for the quarter, down from their prior estimate of $0.64. The consensus estimate for CarMax's current full-year earnings is $2.64 per share. Zacks Research also issued estimates for CarMax's Q3 2027 earnings at $0.42 EPS, Q1 2028 earnings at $0.95 EPS and Q4 2028 earnings at $0.25 EPS.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company had revenue of $8.01 billion during the quarter, compared to analysts' expectations of $7.42 billion. During the same quarter in the previous year, the business posted $1.38 earnings per share. CarMax's quarterly revenue was up 6.2% on a year-over-year basis.

KMX has been the subject of a number of other research reports. Truist Financial boosted their price objective on shares of CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a report on Thursday, June 18th. Argus upgraded shares of CarMax to a "hold" rating in a research report on Thursday, April 16th. UBS Group boosted their price target on CarMax from $42.00 to $57.00 and gave the company a "neutral" rating in a research note on Tuesday, June 23rd. Barclays increased their price target on CarMax from $31.00 to $37.00 and gave the stock an "underweight" rating in a research report on Thursday, June 18th. Finally, Wall Street Zen upgraded CarMax from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, CarMax has an average rating of "Reduce" and an average price target of $47.73.

CarMax Price Performance

NYSE:KMX opened at $51.86 on Thursday. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. The firm's 50-day simple moving average is $44.21 and its 200 day simple moving average is $43.38. The firm has a market cap of $7.36 billion, a price-to-earnings ratio of 33.89, a P/E/G ratio of 1.74 and a beta of 1.16.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. CYBER HORNET ETFs LLC bought a new stake in CarMax during the second quarter worth $28,000. MUFG Securities EMEA plc bought a new position in shares of CarMax in the 2nd quarter valued at $30,000. Basecamp Wealth Advisors LLC raised its holdings in shares of CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock worth $26,000 after buying an additional 327 shares in the last quarter. Huntington National Bank raised its holdings in shares of CarMax by 62.4% during the 4th quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after buying an additional 265 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new position in shares of CarMax during the 3rd quarter worth $32,000.

Insiders Place Their Bets

In other news, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction on Monday, June 22nd. The shares were purchased at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the purchase, the chief executive officer directly owned 33,375 shares of the company's stock, valued at approximately $1,769,208.75. This represents a 39.21% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Sona Chawla bought 2,000 shares of the firm's stock in a transaction on Thursday, June 25th. The stock was purchased at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the acquisition, the director owned 21,702 shares in the company, valued at approximately $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 13,900 shares of company stock worth $735,574 over the last ninety days. Corporate insiders own 1.01% of the company's stock.

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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