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Valued at around $13.2 billion by market cap, Richmond, Virginia-based CarMax, Inc. (KMX) is a leading retailer in the used vehicle industry, providing extensive automotive sales and financing services. The company's fiscal Q2 2025 ends in August 2024.
Ahead of this event, analysts expect CarMax to report a profit of $0.85 per share, up 13.3% from $0.75 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. KMX reported an EPS of $0.97 in Q1, missing the consensus estimate by 2%.
For fiscal 2025, analysts expect the used car retailer to report EPS of $2.99, down nearly 1% from $3.02 in fiscal 2024. However, looking forward to fiscal 2026, EPS is expected to grow 22.4% annually to $3.66.
In 2024, KMX increased 10.8%, trailing behind the broader S&P 500 Index's ($SPX) nearly 14% rise but outpacing the S&P Retail SPDR's (XRT) 7.9% gain on a YTD basis.
CarMax posted a 33% drop in Q1 profit, reporting a net income of $152.40 million on Jun. 21. This was largely due to reduced margins on used vehicle sales, resulting in an overall revenue that fell short of analysts' expectations. Despite the year over year profit decline and ongoing pressure from increased new vehicle availability and discounting, the company remains hopeful for improved sales during the summer months.
Analysts' consensus rating on CarMax stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, opinions include seven "Strong Buys," two "Moderate Buys," five "Holds," one "Moderate Sell," and one "Strong Sell."
This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy." Currently, KMX is trading above the average analyst price target of $78.31.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
