Zacks Research Has Negative Outlook for CarMax Q4 Earnings

CarMax, Inc. (NYSE:KMX - Free Report) - Research analysts at Zacks Research reduced their Q4 2026 earnings per share (EPS) estimates for CarMax in a report released on Wednesday, January 15th. Zacks Research analyst R. Department now forecasts that the company will post earnings per share of $0.75 for the quarter, down from their prior estimate of $0.91. The consensus estimate for CarMax's current full-year earnings is $3.18 per share.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating analysts' consensus estimates of $0.62 by $0.19. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The business had revenue of $6.22 billion for the quarter, compared to analysts' expectations of $6.05 billion. During the same quarter in the prior year, the firm earned $0.52 earnings per share. The firm's revenue was up 1.2% on a year-over-year basis.

A number of other research analysts have also recently commented on KMX. Royal Bank of Canada increased their price target on shares of CarMax from $92.00 to $99.00 and gave the company an "overweight" rating in a research report on Thursday, December 19th. Mizuho increased their target price on shares of CarMax from $72.00 to $80.00 and gave the company a "neutral" rating in a report on Friday, December 20th. BNP Paribas raised shares of CarMax to a "strong sell" rating in a research note on Friday, September 27th. Needham & Company LLC raised their price objective on CarMax from $90.00 to $98.00 and gave the company a "buy" rating in a research note on Friday, December 20th. Finally, Truist Financial boosted their target price on CarMax from $72.00 to $88.00 and gave the company a "hold" rating in a research note on Friday, December 20th. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $85.17.

CarMax Price Performance

Shares of CarMax stock traded down $0.69 during trading on Monday, hitting $78.96. 1,482,993 shares of the stock traded hands, compared to its average volume of 1,894,977. The stock has a market cap of $12.14 billion, a price-to-earnings ratio of 26.77, a PEG ratio of 1.50 and a beta of 1.71. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92. CarMax has a 52 week low of $65.83 and a 52 week high of $91.25. The firm's fifty day moving average is $82.12 and its 200-day moving average is $79.18.

Institutional Investors Weigh In On CarMax

Several hedge funds have recently added to or reduced their stakes in the stock. Quarry LP lifted its position in CarMax by 78.6% in 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 purchased a new position in shares of CarMax in the third quarter worth $32,000. True Wealth Design LLC lifted its holdings in shares of CarMax by 4,844.4% during the third quarter. True Wealth Design LLC now owns 445 shares of the company's stock valued at $34,000 after purchasing an additional 436 shares in the last quarter. Larson Financial Group LLC boosted its position in shares of CarMax by 91.9% during the third quarter. Larson Financial Group LLC now owns 737 shares of the company's stock valued at $57,000 after buying an additional 353 shares during the last quarter. Finally, ST Germain D J Co. Inc. bought a new stake in CarMax in the 4th quarter worth about $58,000.

Insider Activity at CarMax

In other CarMax news, CEO William D. Nash sold 120,513 shares of the firm's stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.24, for a total value of $10,031,502.12. Following the completion of the sale, the chief executive officer now directly owns 181,683 shares in the company, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of the company's stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $81.43, for a total value of $407,150.00. Following the completion of the sale, the chief financial officer now directly owns 20,260 shares in the company, valued at approximately $1,649,771.80. The trade was a 19.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 259,598 shares of company stock worth $21,503,625 over the last quarter. Corporate insiders own 1.66% of the company's stock.

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.