CarMax (KMX) Reports Earnings Tomorrow: What To Expect
Used automotive vehicle retailer Carmax (NYSE:KMX) will be announcing earnings results this Tuesday morning. Here’s what you need to know.
CarMax beat analysts’ revenue expectations last quarter, reporting revenues of $8.01 billion, up 6.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates.
Is CarMax a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CarMax’s revenue to grow 5.4% year on year, a reversal from the 6% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CarMax has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CarMax’s peers in the automotive and marine retail segment, only AutoZone has reported results so far. It missed analysts’ revenue estimates, delivering year-on-year sales growth of 5.6%. The stock traded up 1.4% on the results.
Read our full analysis of AutoZone’s earnings results here.In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the automotive and marine retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.1% on average over the last month. CarMax is down 4.9% during the same time and is heading into earnings with an average analyst price target of $57.15 (compared to the current share price of $58.36).
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