/Carmax%20Inc%20storefront%20by-jetcityimage%20via%20iStock.jpg)
Valued at a market cap of $9 billion, CarMax, Inc. (KMX) is a leading retailer of used vehicles headquartered in Richmond, Virginia. The company also provides related services such as vehicle financing, extended warranties, accessories, and repair services, offering a comprehensive car-buying experience to its customers. It is expected to announce its fiscal Q2 earnings for 2026 on Thursday, Sep. 25.
Prior to this event, analysts project this used vehicles retailer to report a profit of $1.05 per share, up 23.5% from $0.85 per share in the year-ago quarter. The company has met or surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $1.38 per share in the previous quarter topped the consensus estimates by almost 17%.
For the full year, analysts expect CarMax to report EPS of $3.91, up 19.6% from $3.27 per share in fiscal 2025. Its EPS is expected to further grow 15.9% year-over-year to $4.53 in fiscal 2027.
Shares of KMX have declined 27.4% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 17.1% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.9% return over the same time frame.
Shares of CarMax closed up 6.6% on Jun. 20, after it delivered better-than-expected Q1 results. Mainly due to a 7.5% increase in used vehicle sales, the company’s overall revenue improved 6.1% year-over-year to $7.5 billion, exceeding Wall Street's expectations by a slight margin. Moreover, its gross profit margin expanded by 70 basis points, leading to a notable 42.3% rise in its net income to $1.38 per share, which topped the consensus estimates by 16.9%.
Wall Street analysts are moderately optimistic about KMX’s stock, with an overall "Moderate Buy" rating. Among 18 analysts covering the stock, nine recommend "Strong Buy," three indicate "Moderate Buy," three advise “Hold,” one suggests a "Moderate Sell,” and two recommend "Strong Sell” ratings. The mean price target for KMX is $80.62, implying a 33.8% premium from the current levels.
On the date of publication, Neharika Jain 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.
