Zacks Research Issues Negative Forecast for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Research analysts at Zacks Research dropped their Q1 2028 earnings per share (EPS) estimates for shares of CarMax in a report issued on Thursday, September 17th. Zacks Research analyst Team now expects that the company will earn $0.95 per share for the quarter, down from their previous forecast of $1.01. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.71 per share. Zacks Research also issued estimates for CarMax’s Q2 2028 earnings at $0.83 EPS, Q3 2028 earnings at $0.68 EPS, Q4 2028 earnings at $0.25 EPS, FY2028 earnings at $2.71 EPS, Q1 2029 earnings at $0.81 EPS, Q2 2029 earnings at $0.73 EPS and FY2029 earnings at $2.91 EPS.

A number of other analysts have also recently commented on KMX. Truist Financial upped their price target on CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research report on Thursday, June 18th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research report on Thursday, June 18th. Barclays upgraded CarMax from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. Robert W. Baird increased their target price on shares of CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a report on Thursday, June 18th. Finally, Weiss Ratings raised shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, July 20th. Two equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $51.67.

CarMax Price Performance

NYSE KMX opened at $57.97 on Monday. The company has a market capitalization of $8.23 billion, a PE ratio of 37.89, a price-to-earnings-growth ratio of 2.64 and a beta of 1.17. 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 business’s fifty day moving average is $59.56 and its 200 day moving average is $49.56. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28.

Insider Activity at CarMax

In other CarMax news, Director Sona Chawla acquired 2,000 shares of the company’s stock in a transaction dated Thursday, June 25th. The stock was purchased at an average price of $53.39 per share, with a total value of $106,780.00. Following the completion of the purchase, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. The trade was a 10.15% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.01% of the stock is owned by insiders.

Institutional Trading of CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in KMX. Jupiter Topco LLC bought a new position in shares of CarMax during the second quarter worth $245,676,000. Janus Henderson Group PLC increased its holdings in CarMax by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock valued at $190,471,000 after acquiring an additional 49,987 shares during the last quarter. Primecap Management Co. CA purchased a new stake in CarMax in the 2nd quarter worth $230,548,000. Dimensional Fund Advisors LP lifted its stake in CarMax by 7.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after purchasing an additional 289,768 shares in the last quarter. Finally, Norges Bank bought a new position in shares of CarMax during the 4th quarter valued at about $159,232,000.

Key Stories Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax announced plans to eliminate approximately 145 corporate positions, or about 4% of its corporate workforce. Management said the restructuring is intended to help the company operate more efficiently, move faster and improve alignment across teams. The cost reductions could support profitability as the company works through a turnaround. CarMax Cuts 145 Corporate Jobs in Third Layoff Round in 11 Months
• Positive Sentiment: Some Wall Street forecasters have recently raised their price targets ahead of CarMax’s fiscal second-quarter results, suggesting expectations for improved performance despite generally neutral analyst ratings. Top Wall Street Forecasters Revamp CarMax Expectations Ahead Of Q2 Earnings
• Neutral Sentiment: CarMax is expected to report fiscal second-quarter earnings before the market opens on Sept. 29. The current consensus outlook calls for earnings per share of approximately $0.70 and revenue of about $6.94 billion, both above the year-ago period. CarMax Q2 Earnings Expectations
• Negative Sentiment: The layoffs represent CarMax’s third workforce reduction in roughly 12 months and come amid a soft auto market, highlighting continued pressure on demand and the need for a turnaround under CEO Keith Barr. CarMax Cuts Jobs for Third Time in 12 Months Amid Soft Auto Market
• Negative Sentiment: One earnings preview argues that CarMax’s share price has risen faster than the underlying business, raising valuation concerns ahead of the results and increasing the risk of disappointment if earnings or guidance fall short. CarMax Earnings Preview

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.