Wedbush Issues Optimistic Estimate for CarMax Earnings

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Wedbush upped their Q3 2025 earnings estimates for CarMax in a research report issued on Tuesday, December 17th. Wedbush analyst S. Basham now anticipates that the company will post earnings of $0.57 per share for the quarter, up from their prior estimate of $0.51. 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 $3.01 per share. Wedbush also issued estimates for CarMax's FY2025 earnings at $2.95 EPS, Q1 2026 earnings at $1.30 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.71 EPS, Q4 2026 earnings at $0.60 EPS and FY2026 earnings at $3.62 EPS.

Several other equities analysts have also recently commented on KMX. Evercore ISI increased their target price on CarMax from $83.00 to $85.00 and gave the company a "market perform" rating in a research note on Thursday. Mizuho upped their price target on shares of CarMax from $72.00 to $80.00 and gave the company a "neutral" rating in a report on Friday. StockNews.com raised shares of CarMax from a "sell" rating to a "hold" rating in a report on Friday. Stephens initiated coverage on shares of CarMax in a research note on Thursday, December 5th. They issued an "equal weight" rating and a $86.00 target price on the stock. Finally, Truist Financial upped their price objective on CarMax from $72.00 to $88.00 and gave the company a "hold" rating in a research note on Friday. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $85.17.

CarMax Stock Up 0.0 %

KMX traded up $0.04 on Friday, reaching $84.27. The company's stock had a trading volume of 4,188,560 shares, compared to its average volume of 1,945,593. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The business's 50 day moving average is $78.77 and its 200 day moving average is $77.55. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. The stock has a market cap of $13.06 billion, a price-to-earnings ratio of 31.68, a price-to-earnings-growth ratio of 1.76 and a beta of 1.71.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating analysts' consensus estimates of $0.62 by $0.19. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The company had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.05 billion. During the same period in the prior year, the company posted $0.52 EPS. The firm's revenue for the quarter was up 1.2% on a year-over-year basis.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP raised its stake in CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company's stock valued at $31,000 after acquiring an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC bought a new stake in shares of CarMax during the third quarter valued at about $32,000. True Wealth Design LLC lifted its holdings in CarMax by 4,844.4% in the third quarter. True Wealth Design LLC now owns 445 shares of the company's stock worth $34,000 after purchasing an additional 436 shares during the period. Blue Trust Inc. grew its position in CarMax by 134.1% in the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company's stock valued at $37,000 after buying an additional 287 shares in the last quarter. Finally, Studio Investment Management LLC increased its stake in CarMax by 176.7% during the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company's stock valued at $38,000 after buying an additional 334 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.