What is Zacks Research’s Estimate for CarMax Q1 Earnings?

CarMax, Inc. (NYSE:KMX) – Investment analysts at Zacks Research decreased their Q1 2027 earnings estimates for CarMax in a research note issued to investors on Friday, June 12th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.94 for the quarter, down from their prior estimate of $1.03. The consensus estimate for CarMax’s current full-year earnings is $2.28 per share. Zacks Research also issued estimates for CarMax’s Q2 2027 earnings at $0.64 EPS, Q3 2027 earnings at $0.46 EPS, Q4 2027 earnings at $0.21 EPS, FY2027 earnings at $2.24 EPS, Q1 2028 earnings at $1.08 EPS, Q2 2028 earnings at $0.83 EPS, Q3 2028 earnings at $0.66 EPS, Q4 2028 earnings at $0.29 EPS, FY2028 earnings at $2.86 EPS, Q1 2029 earnings at $0.97 EPS and FY2029 earnings at $3.95 EPS.

A number of other analysts have also recently weighed in on the stock. Weiss Ratings restated a “sell (d)” rating on shares of CarMax in a report on Wednesday, April 8th. Wall Street Zen upgraded shares of CarMax from a “sell” rating to a “hold” rating in a report on Saturday. Barclays raised their target price on shares of CarMax from $26.00 to $31.00 and gave the stock an “underweight” rating in a report on Friday. Evercore set a $45.00 target price on shares of CarMax in a report on Friday, April 10th. Finally, Robert W. Baird raised their target price on shares of CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a report on Wednesday, February 18th. One analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $41.73.

CarMax Trading Up 0.0%

Shares of NYSE:KMX opened at $51.27 on Monday. The stock has a market capitalization of $7.27 billion, a price-to-earnings ratio of 32.04, a PEG ratio of 1.95 and a beta of 1.21. CarMax has a 1-year low of $30.26 and a 1-year high of $71.99. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.49 and a current ratio of 2.20. The company has a 50 day moving average price of $41.83 and a 200 day moving average price of $42.19.

CarMax (NYSE:KMX) last issued its earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.12. The firm had revenue of $5.95 billion during the quarter, compared to analysts’ expectations of $5.65 billion. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same period last year, the firm posted $0.58 earnings per share.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. SRS Investment Management LLC boosted its stake in CarMax by 1,717.5% in the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares during the period. AQR Capital Management LLC boosted its stake in CarMax by 151.8% in the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares during the period. Norges Bank acquired a new position in CarMax in the 4th quarter worth approximately $159,232,000. Arrowstreet Capital Limited Partnership boosted its stake in CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after purchasing an additional 1,494,205 shares during the period. Finally, Vulcan Value Partners LLC boosted its stake in CarMax by 135.2% in the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock worth $104,569,000 after purchasing an additional 1,338,134 shares during the period.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax posted better-than-expected quarterly results last month, reporting EPS of $0.34 versus the $0.22 consensus and revenue of $5.95 billion versus $5.65 billion expected, which supports the stock’s longer-term rebound.
• Positive Sentiment: Wall Street Zen upgraded CarMax to a “Hold” rating, which may help stabilize investor sentiment. Article Title
• Neutral Sentiment: A report questioned whether CarMax’s finance-accounting leadership shift reflects confidence in the company’s strategy, but the item does not indicate a major change in fundamentals. Article Title
• Negative Sentiment: Zacks Research lowered its EPS estimates for multiple upcoming periods, including FY2027, FY2028, FY2029, and several quarterly forecasts, signaling slower expected earnings momentum for CarMax.
• Negative Sentiment: The repeated downward revisions to future earnings expectations could weigh on valuation if investors become more cautious about CarMax’s growth trajectory.

About CarMax

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.