Wedbush Equities Analysts Lift Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Wedbush lifted their FY2025 earnings per share (EPS) estimates for shares of CarMax in a research note issued on Friday, December 20th. Wedbush analyst S. Basham now anticipates that the company will post earnings per share of $3.17 for the year, up from their previous forecast of $2.95. 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 Q4 2025 earnings at $0.54 EPS and Q4 2026 earnings at $0.58 EPS.

A number of other research firms have also weighed in on KMX. Truist Financial boosted their price objective on shares of CarMax from $72.00 to $88.00 and gave the company a "hold" rating in a research report on Friday. StockNews.com upgraded CarMax from a "sell" rating to a "hold" rating in a report on Friday. Needham & Company LLC raised their price objective on CarMax from $90.00 to $98.00 and gave the stock a "buy" rating in a report on Friday. Oppenheimer reiterated an "outperform" rating and issued a $105.00 target price on shares of CarMax in a research note on Friday, October 4th. Finally, JPMorgan Chase & Co. increased their target price on CarMax from $70.00 to $72.00 and gave the stock an "underweight" rating in a research report on Friday. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $85.17.

CarMax Price Performance

NYSE:KMX traded down $0.57 during trading hours on Monday, reaching $83.70. 1,864,066 shares of the company traded hands, compared to its average volume of 1,945,279. CarMax has a 1-year low of $65.83 and a 1-year high of $91.25. The stock has a market cap of $12.97 billion, a P/E ratio of 31.47, a P/E/G ratio of 1.76 and a beta of 1.71. The firm's 50-day moving average is $79.01 and its 200-day moving average is $77.73. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68.

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

Institutional Investors Weigh In On CarMax

A number of large investors have recently added to or reduced their stakes in the company. State Street Corp boosted its holdings in CarMax by 0.6% in the third quarter. State Street Corp now owns 6,193,174 shares of the company's stock worth $479,228,000 after purchasing an additional 36,959 shares during the period. Janus Henderson Group PLC increased its position in CarMax by 0.6% in the third quarter. Janus Henderson Group PLC now owns 4,642,235 shares of the company's stock worth $359,216,000 after buying an additional 28,466 shares during the period. Geode Capital Management LLC lifted its stake in CarMax by 0.4% in the third quarter. Geode Capital Management LLC now owns 3,663,209 shares of the company's stock valued at $282,479,000 after buying an additional 14,903 shares during the last quarter. First Pacific Advisors LP boosted its holdings in shares of CarMax by 2.0% during the second quarter. First Pacific Advisors LP now owns 2,386,210 shares of the company's stock valued at $175,005,000 after acquiring an additional 47,184 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of CarMax by 2.6% during the second quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company's stock worth $147,230,000 after acquiring an additional 51,397 shares during the last quarter.

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.