CarMax, Inc (KMX) to Post FY2018 Earnings of $3.92 Per Share, Wedbush Forecasts

CarMax, Inc (NYSE:KMX) – Investment analysts at Wedbush reduced their FY2018 earnings estimates for CarMax in a research report issued to clients and investors on Tuesday. Wedbush analyst S. Basham now expects that the company will post earnings per share of $3.92 for the year, down from their prior estimate of $3.97. Wedbush currently has a “Outperform” rating and a $81.00 price target on the stock. Wedbush also issued estimates for CarMax’s Q4 2018 earnings at $1.00 EPS, Q3 2019 earnings at $1.05 EPS and FY2019 earnings at $4.86 EPS.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 21st. The company reported $0.81 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.82 by ($0.01). CarMax had a return on equity of 21.77% and a net margin of 4.07%. The company had revenue of $4.11 billion during the quarter, compared to analysts’ expectations of $3.97 billion. During the same quarter in the prior year, the company posted $0.72 EPS. The company’s revenue for the quarter was up 11.0% on a year-over-year basis.

A number of other analysts also recently commented on KMX. Zacks Investment Research downgraded CarMax from a “buy” rating to a “hold” rating in a research report on Tuesday, October 31st. Credit Suisse Group dropped their price objective on CarMax from $83.00 to $71.54 and set an “outperform” rating on the stock in a research note on Friday, January 26th. Berenberg Bank upgraded CarMax from a “hold” rating to a “buy” rating and set a $83.00 price objective on the stock in a research note on Monday, January 8th. ValuEngine lowered CarMax from a “buy” rating to a “hold” rating in a research note on Wednesday, November 15th. Finally, Deutsche Bank lowered CarMax from a “buy” rating to a “hold” rating and set a $76.00 price objective on the stock. in a research note on Friday, November 17th. Eight investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. CarMax presently has a consensus rating of “Buy” and an average price target of $79.68.

CarMax (NYSE:KMX) traded down $0.42 during trading on Thursday, hitting $64.98. The company had a trading volume of 935,265 shares, compared to its average volume of 2,250,246. The company has a debt-to-equity ratio of 3.83, a quick ratio of 0.51 and a current ratio of 2.70. CarMax has a 12-month low of $54.29 and a 12-month high of $77.64. The stock has a market capitalization of $11,812.98, a P/E ratio of 17.53, a PEG ratio of 1.15 and a beta of 1.53.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. Bronfman E.L. Rothschild L.P. increased its stake in CarMax by 57.9% in the fourth quarter. Bronfman E.L. Rothschild L.P. now owns 6,564 shares of the company’s stock valued at $421,000 after purchasing an additional 2,407 shares in the last quarter. Mar Vista Investment Partners LLC bought a new stake in CarMax in the fourth quarter valued at $38,803,000. Fenimore Asset Management Inc. increased its stake in CarMax by 2.1% in the fourth quarter. Fenimore Asset Management Inc. now owns 895,867 shares of the company’s stock valued at $57,452,000 after purchasing an additional 18,115 shares in the last quarter. California Public Employees Retirement System increased its stake in CarMax by 3.1% in the fourth quarter. California Public Employees Retirement System now owns 448,825 shares of the company’s stock valued at $28,783,000 after purchasing an additional 13,420 shares in the last quarter. Finally, M&T Bank Corp increased its stake in CarMax by 26.8% in the fourth quarter. M&T Bank Corp now owns 70,270 shares of the company’s stock valued at $4,506,000 after purchasing an additional 14,866 shares in the last quarter.

In related news, SVP Darren C. Newberry sold 6,584 shares of CarMax stock in a transaction dated Tuesday, January 16th. The stock was sold at an average price of $72.61, for a total transaction of $478,064.24. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Thomas J. Folliard sold 8,000 shares of CarMax stock in a transaction dated Thursday, February 1st. The stock was sold at an average price of $70.64, for a total value of $565,120.00. Following the sale, the director now directly owns 415,572 shares in the company, valued at $29,356,006.08. The disclosure for this sale can be found here. Over the last three months, insiders have sold 74,584 shares of company stock worth $5,226,064. 1.70% of the stock is owned by company insiders.

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About CarMax

CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.

Earnings History and Estimates for CarMax (NYSE:KMX)

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