Analysts Expect CarMax, Inc (NYSE:KMX) Will Post Quarterly Sales of $4.64 Billion

Wall Street analysts forecast that CarMax, Inc (NYSE:KMX) will announce sales of $4.64 billion for the current quarter, Zacks reports. Four analysts have provided estimates for CarMax’s earnings, with the highest sales estimate coming in at $4.74 billion and the lowest estimate coming in at $4.56 billion. CarMax posted sales of $4.32 billion in the same quarter last year, which suggests a positive year-over-year growth rate of 7.4%. The company is expected to report its next quarterly earnings results before the market opens on Thursday, April 2nd.

According to Zacks, analysts expect that CarMax will report full-year sales of $20.06 billion for the current financial year, with estimates ranging from $19.92 billion to $20.29 billion. For the next year, analysts forecast that the firm will post sales of $21.32 billion, with estimates ranging from $20.85 billion to $21.85 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover CarMax.

CarMax (NYSE:KMX) last announced its earnings results on Friday, December 20th. The company reported $1.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.16 by ($0.12). The company had revenue of $4.79 billion for the quarter, compared to analyst estimates of $4.62 billion. CarMax had a return on equity of 24.53% and a net margin of 4.40%. The firm’s revenue for the quarter was up 11.5% on a year-over-year basis. During the same period last year, the firm earned $1.09 earnings per share.

A number of equities research analysts have recently issued reports on KMX shares. Credit Suisse Group boosted their target price on CarMax from $95.00 to $100.00 and gave the stock an “outperform” rating in a research report on Tuesday, December 24th. Oppenheimer boosted their target price on CarMax from $100.00 to $118.00 and gave the stock an “outperform” rating in a research report on Monday, December 16th. Buckingham Research boosted their target price on CarMax from $96.00 to $102.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 18th. Royal Bank of Canada boosted their target price on CarMax from $105.00 to $108.00 and gave the stock an “outperform” rating in a research report on Wednesday, December 18th. Finally, Zacks Investment Research lowered CarMax from a “buy” rating to a “hold” rating and set a $104.00 target price on the stock. in a research report on Thursday, December 12th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and ten have issued a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $104.35.

In other news, EVP Thomas W. Reedy, Jr. sold 29,550 shares of CarMax stock in a transaction on Tuesday, February 4th. The stock was sold at an average price of $96.87, for a total transaction of $2,862,508.50. Following the transaction, the executive vice president now owns 31,970 shares in the company, valued at $3,096,933.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.09% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Advisory Research Inc. grew its stake in CarMax by 2.1% in the fourth quarter. Advisory Research Inc. now owns 5,602 shares of the company’s stock valued at $491,000 after purchasing an additional 113 shares in the last quarter. Dorsey & Whitney Trust CO LLC grew its stake in CarMax by 4.1% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 3,171 shares of the company’s stock valued at $278,000 after purchasing an additional 124 shares in the last quarter. Strs Ohio grew its stake in CarMax by 2.2% in the third quarter. Strs Ohio now owns 6,176 shares of the company’s stock valued at $543,000 after purchasing an additional 132 shares in the last quarter. Wetherby Asset Management Inc. grew its stake in CarMax by 4.5% in the third quarter. Wetherby Asset Management Inc. now owns 3,519 shares of the company’s stock valued at $309,000 after purchasing an additional 153 shares in the last quarter. Finally, Act Two Investors LLC grew its stake in CarMax by 0.6% in the fourth quarter. Act Two Investors LLC now owns 26,114 shares of the company’s stock valued at $2,289,000 after purchasing an additional 154 shares in the last quarter. Institutional investors and hedge funds own 98.80% of the company’s stock.

Shares of CarMax stock traded down $3.76 on Monday, reaching $97.45. 948,706 shares of the company were exchanged, compared to its average volume of 1,166,984. The stock has a fifty day moving average price of $96.00 and a 200-day moving average price of $91.85. The firm has a market capitalization of $16.17 billion, a price-to-earnings ratio of 18.89, a price-to-earnings-growth ratio of 1.62 and a beta of 1.10. The company has a current ratio of 2.43, a quick ratio of 0.54 and a debt-to-equity ratio of 4.07. CarMax has a fifty-two week low of $58.19 and a fifty-two week high of $103.18.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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