Insights Ahead: CarMax's Quarterly Earnings

CarMax (NYSE:KMX) will release its quarterly earnings report on Thursday, 2025-12-18. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate CarMax to report an earnings per share (EPS) of $0.32.

CarMax bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.39, leading to a 1.62% drop in the share price on the subsequent day.

Here's a look at CarMax's past performance and the resulting price change:

Quarter	Q2 2026	Q1 2026	Q4 2025	Q3 2025
EPS Estimate	1.03	1.17	0.66	0.61
EPS Actual	0.64	1.38	0.64	0.81
Price Change %	-2.00	7.00	3.00	0.00

Stock Performance

Shares of CarMax were trading at $40.63 as of December 16. Over the last 52-week period, shares are down 51.76%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on CarMax

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on CarMax.

Analysts have given CarMax a total of 20 ratings, with the consensus rating being Neutral. The average one-year price target is $46.4, indicating a potential 14.2% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Group 1 Automotive, Asbury Automotive Group and AutoNation, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Group 1 Automotive, with an average 1-year price target of $451.67, suggesting a potential 1011.67% upside.
• Analysts currently favor an Neutral trajectory for Asbury Automotive Group, with an average 1-year price target of $247.75, suggesting a potential 509.77% upside.
• Analysts currently favor an Outperform trajectory for AutoNation, with an average 1-year price target of $246.62, suggesting a potential 506.99% upside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Group 1 Automotive, Asbury Automotive Group and AutoNation are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
CarMax	Neutral	-5.97%	$717.67M	1.53%
Group 1 Automotive	Neutral	10.75%	$919.70M	0.41%
Asbury Automotive Group	Neutral	13.31%	$802.50M	3.84%
AutoNation	Outperform	6.85%	$1.24B	8.64%

Key Takeaway:

CarMax ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. CarMax is at the bottom for Return on Equity.

All You Need to Know About CarMax

CarMax sells, finances, and services used and new cars through a chain of over 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2025, the company retailed and wholesaled 789,050 and 544,312 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in calendar 2024. It seeks over 5% share. CarMax is based in Richmond, Virginia.

CarMax's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 31 August, 2025, the company experienced a revenue decline of approximately -5.97%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.45%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.53%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.35%, the company showcases effective utilization of assets.

Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.09, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for CarMax visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.