CarMax, Inc (KMX) Expected to Post Earnings of $1.04 Per Share

Equities analysts expect CarMax, Inc (NYSE:KMX) to post earnings of $1.04 per share for the current fiscal quarter, according to Zacks Investment Research. Four analysts have provided estimates for CarMax’s earnings, with the lowest EPS estimate coming in at $0.91 and the highest estimate coming in at $1.16. CarMax reported earnings per share of $0.77 in the same quarter last year, which indicates a positive year over year growth rate of 35.1%. The company is expected to announce its next earnings report before the market opens on Friday, March 29th.

According to Zacks, analysts expect that CarMax will report full year earnings of $4.72 per share for the current fiscal year, with EPS estimates ranging from $4.58 to $4.82. For the next fiscal year, analysts forecast that the business will report earnings of $5.08 per share, with EPS estimates ranging from $4.85 to $5.25. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side analysts that follow CarMax.

CarMax (NYSE:KMX) last released its quarterly earnings results on Friday, December 21st. The company reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.09. CarMax had a net margin of 4.30% and a return on equity of 23.26%. The company had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.33 billion. During the same period in the previous year, the firm earned $0.81 EPS. CarMax’s revenue was up 4.6% on a year-over-year basis.

A number of analysts have commented on KMX shares. Wedbush downgraded shares of CarMax from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $70.00 to $60.00 in a research report on Friday, January 18th. Guggenheim upgraded shares of CarMax from a “neutral” rating to a “buy” rating in a research report on Monday, December 24th. ValuEngine downgraded shares of CarMax from a “hold” rating to a “sell” rating in a research report on Friday, November 16th. Buckingham Research upgraded shares of CarMax from a “neutral” rating to a “buy” rating in a research report on Monday, January 7th. Finally, Royal Bank of Canada dropped their price target on shares of CarMax to $67.00 and set an “outperform” rating on the stock in a research report on Wednesday, December 19th. Three analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $81.00.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. Norges Bank bought a new stake in shares of CarMax in the 4th quarter worth approximately $83,206,000. Makaira Partners LLC bought a new stake in shares of CarMax in the 4th quarter worth approximately $46,107,000. Squarepoint Ops LLC bought a new stake in shares of CarMax in the 4th quarter worth approximately $23,619,000. Deutsche Bank AG raised its holdings in shares of CarMax by 141.9% in the 3rd quarter. Deutsche Bank AG now owns 597,039 shares of the company’s stock worth $44,572,000 after purchasing an additional 350,274 shares in the last quarter. Finally, Two Sigma Advisers LP bought a new stake in shares of CarMax in the 4th quarter worth approximately $17,788,000. Institutional investors and hedge funds own 99.63% of the company’s stock.

KMX stock opened at $60.61 on Friday. CarMax has a 52 week low of $55.24 and a 52 week high of $81.67. The stock has a market cap of $10.37 billion, a price-to-earnings ratio of 16.38, a P/E/G ratio of 0.85 and a beta of 1.26. The company has a debt-to-equity ratio of 3.93, a quick ratio of 0.52 and a current ratio of 2.50.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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Earnings History and Estimates for CarMax (NYSE:KMX)

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