CarMax, Inc. Forecasted to Post Q2 2025 Earnings of $0.86 Per Share (NYSE:KMX)

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at Wedbush lowered their Q2 2025 earnings per share (EPS) estimates for shares of CarMax in a note issued to investors on Tuesday, September 17th. Wedbush analyst S. Basham now expects that the company will earn $0.86 per share for the quarter, down from their prior estimate of $0.94. Wedbush currently has a "Outperform" rating and a $95.00 target price on the stock. The consensus estimate for CarMax's current full-year earnings is $2.99 per share. Wedbush also issued estimates for CarMax's Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.06 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.74 EPS and Q4 2026 earnings at $0.60 EPS.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Friday, June 21st. The company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.03. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The company had revenue of $7.11 billion for the quarter, compared to the consensus estimate of $7.16 billion. During the same period last year, the business posted $1.16 earnings per share. The firm's revenue was down 7.5% compared to the same quarter last year.

KMX has been the topic of several other research reports. Needham & Company LLC lowered their price objective on shares of CarMax from $91.00 to $87.00 and set a "buy" rating on the stock in a research note on Monday, June 24th. Mizuho dropped their price objective on shares of CarMax from $75.00 to $72.00 and set a "neutral" rating on the stock in a report on Tuesday, June 18th. Argus upgraded shares of CarMax to a "hold" rating in a research note on Tuesday, June 25th. Royal Bank of Canada boosted their price target on CarMax from $73.00 to $75.00 and gave the company an "outperform" rating in a research note on Monday, June 24th. Finally, Oppenheimer reissued an "outperform" rating and set a $105.00 price objective on shares of CarMax in a report on Monday, June 24th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $76.25.

CarMax Stock Performance

KMX traded down $2.18 during midday trading on Wednesday, reaching $77.21. The company's stock had a trading volume of 2,546,805 shares, compared to its average volume of 1,896,668. The company has a current ratio of 2.50, a quick ratio of 0.60 and a debt-to-equity ratio of 2.95. The company has a fifty day simple moving average of $80.40 and a 200 day simple moving average of $76.53. The stock has a market cap of $12.05 billion, a P/E ratio of 30.16, a PEG ratio of 1.53 and a beta of 1.69. CarMax has a twelve month low of $59.66 and a twelve month high of $88.22.

Insider Buying and Selling at CarMax

In other news, CEO William D. Nash sold 120,000 shares of the stock in a transaction on Thursday, July 11th. The stock was sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the sale, the chief executive officer now owns 181,683 shares in the company, valued at $14,465,600.46. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other news, CEO William D. Nash sold 120,000 shares of the stock in a transaction that occurred on Thursday, July 11th. The shares were sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the sale, the chief executive officer now directly owns 181,683 shares of the company's stock, valued at $14,465,600.46. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Jon G. Daniels sold 1,231 shares of the firm's stock in a transaction that occurred on Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total transaction of $89,198.26. Following the completion of the sale, the senior vice president now directly owns 995 shares of the company's stock, valued at approximately $72,097.70. The disclosure for this sale can be found here. In the last quarter, insiders sold 185,243 shares of company stock worth $14,893,042. 1.66% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CarMax

Several large investors have recently made changes to their positions in KMX. Sanctuary Advisors LLC bought a new position in CarMax in the second quarter valued at approximately $814,000. Cetera Investment Advisers grew its stake in shares of CarMax by 12.3% during the second quarter. Cetera Investment Advisers now owns 141,266 shares of the company's stock worth $10,360,000 after purchasing an additional 15,476 shares during the period. Truist Financial Corp increased its holdings in CarMax by 1.3% in the second quarter. Truist Financial Corp now owns 74,647 shares of the company's stock valued at $5,475,000 after purchasing an additional 951 shares during the last quarter. Quarry LP lifted its stake in CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company's stock valued at $31,000 after buying an additional 184 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its position in shares of CarMax by 2.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company's stock worth $456,000 after buying an additional 142 shares during the period.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.