Zacks Research Has Pessimistic Outlook of CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX) – Research analysts at Zacks Research decreased their Q1 2028 earnings per share (EPS) estimates for CarMax in a report issued on Thursday, September 17th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.95 per share for the quarter, down from their prior estimate of $1.01. Zacks Research 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.

Other research analysts have also recently issued research reports about the stock. Mizuho lifted their price objective on shares of CarMax from $38.00 to $43.00 and gave the company a “neutral” rating in a report on Thursday, June 18th. Weiss Ratings raised shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. UBS Group set a $60.00 target price on CarMax in a research report on Wednesday, July 29th. Robert W. Baird lifted their price target on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a research note on Thursday, June 18th. Finally, JPMorgan Chase & Co. increased their price target on CarMax from $60.00 to $70.00 and gave the stock a “neutral” rating in a research report on Friday, September 18th. Two equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, CarMax presently has a consensus rating of “Reduce” and a consensus target price of $51.67.

CarMax Stock Performance

KMX opened at $56.77 on Monday. The firm has a fifty day moving average price of $59.58 and a 200 day moving average price of $49.66. CarMax has a 1 year low of $30.26 and a 1 year high of $65.28. The stock has a market cap of $8.06 billion, a P/E ratio of 37.10, a P/E/G ratio of 2.67 and a beta of 1.17. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

Insider Buying and Selling at CarMax

In related news, Director Sona Chawla purchased 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $53.39 per share, with a total value of $106,780.00. Following the purchase, the director owned 21,702 shares of the company’s stock, valued at $1,158,669.78. This represents a 10.15% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently made changes to their positions in the company. Jupiter Topco LLC purchased a new position in shares of CarMax in the second quarter valued at approximately $245,676,000. Primecap Management Co. CA acquired a new stake in shares of CarMax in the second quarter worth approximately $230,548,000. Norges Bank purchased a new stake in shares of CarMax during the fourth quarter worth approximately $159,232,000. The Manufacturers Life Insurance Company purchased a new stake in shares of CarMax during the second quarter worth approximately $128,001,000. Finally, Canada Pension Plan Investment Board acquired a new position in CarMax in the 2nd quarter valued at $115,465,000.

Key Stories Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax eliminated 145 corporate positions, or roughly 4% of its corporate workforce, as part of a plan to operate more efficiently. The reductions could lower expenses and support the company’s turnaround efforts, although they also highlight ongoing cost pressures. CarMax Cuts 145 Corporate Jobs in Third Layoff Round in 11 Months
• Positive Sentiment: Analysts expect CarMax’s upcoming quarterly results to show year-over-year earnings growth, with consensus expectations of approximately $0.70 in earnings per share and $6.94 billion in revenue. Some Wall Street forecasters have recently raised their price targets. CarMax Earnings Expectations
• Neutral Sentiment: CarMax is scheduled to report fiscal second-quarter results before the market opens on Sept. 29. The report and management’s outlook will be key catalysts because investors are assessing whether cost reductions can offset a soft automotive market. CarMax Quarterly Earnings Date
• Negative Sentiment: Zacks said CarMax lacks the usual combination of factors that would support a likely earnings beat, increasing the risk of a disappointing report or cautious guidance. CarMax Earnings Preview
• Negative Sentiment: Bernstein Liebhard announced an investigation into potential breaches of fiduciary duty by certain CarMax directors and officers. The announcement adds legal and governance uncertainty for shareholders. CarMax Shareholder Investigation
• Negative Sentiment: The latest layoffs represent CarMax’s third workforce reduction in roughly 11 months, underscoring persistent softness in the used-car market. Analysts have also assigned the stock a consensus “Reduce” rating, while some commentary argues that the share price has risen faster than the underlying business. CarMax Consensus Reduce Rating

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.