William Blair Brokers Raise Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at William Blair lifted their Q3 2025 earnings estimates for CarMax in a report released on Thursday, December 12th. William Blair analyst S. Zackfia now expects that the company will post earnings per share of $0.63 for the quarter, up from their previous forecast of $0.62. The consensus estimate for CarMax's current full-year earnings is $3.01 per share. William Blair also issued estimates for CarMax's FY2025 earnings at $3.05 EPS, Q1 2026 earnings at $1.18 EPS, Q2 2026 earnings at $0.95 EPS, Q3 2026 earnings at $0.79 EPS, Q4 2026 earnings at $0.82 EPS, FY2026 earnings at $3.74 EPS and FY2027 earnings at $4.25 EPS.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Thursday, September 26th. The company reported $0.85 EPS for the quarter, missing analysts' consensus estimates of $0.86 by ($0.01). CarMax had a net margin of 1.61% and a return on equity of 6.83%. The company had revenue of $7.01 billion for the quarter, compared to analysts' expectations of $6.83 billion. During the same period in the previous year, the firm posted $0.75 earnings per share. The business's revenue for the quarter was down .9% on a year-over-year basis.

KMX has been the topic of several other research reports. BNP Paribas raised shares of CarMax to a "strong sell" rating in a research report on Friday, September 27th. Royal Bank of Canada reissued an "outperform" rating and set a $82.00 price objective on shares of CarMax in a research report on Wednesday, October 16th. Wedbush reiterated an "outperform" rating and issued a $95.00 target price on shares of CarMax in a research note on Wednesday, October 16th. Truist Financial increased their price objective on shares of CarMax from $70.00 to $75.00 and gave the company a "hold" rating in a research note on Monday, September 23rd. Finally, Stephens started coverage on shares of CarMax in a research report on Thursday, December 5th. They set an "equal weight" rating and a $86.00 target price on the stock. Four analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $81.00.

CarMax Stock Down 0.3 %

KMX stock traded down $0.30 during mid-day trading on Monday, hitting $85.96. The stock had a trading volume of 2,407,029 shares, compared to its average volume of 1,907,897. The stock has a market capitalization of $13.32 billion, a price-to-earnings ratio of 32.32, a PEG ratio of 1.76 and a beta of 1.71. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93. CarMax has a 1-year low of $65.83 and a 1-year high of $88.22. The company has a fifty day moving average of $78.08 and a 200 day moving average of $77.38.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently bought and sold shares of KMX. Quarry LP boosted its position in shares of CarMax by 78.6% during the second quarter. Quarry LP now owns 418 shares of the company's stock worth $31,000 after purchasing an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC acquired a new position in CarMax in the third quarter valued at about $32,000. True Wealth Design LLC increased its holdings in shares of 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 acquiring an additional 436 shares in the last quarter. Blue Trust Inc. lifted its holdings in shares of CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company's stock valued at $37,000 after purchasing an additional 287 shares in the last quarter. Finally, Studio Investment Management LLC grew its position in shares of CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company's stock valued at $38,000 after purchasing 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.