CarMax, Inc. (NYSE:KMX) Expected to Announce Earnings of $1.61 Per Share

Brokerages predict that CarMax, Inc. (NYSE:KMX) will announce earnings of $1.61 per share for the current fiscal quarter, Zacks Investment Research reports. Six analysts have issued estimates for CarMax’s earnings. The lowest EPS estimate is $1.45 and the highest is $1.76. CarMax reported earnings of $0.23 per share during the same quarter last year, which would indicate a positive year over year growth rate of 600%. The business is expected to announce its next earnings results on Friday, June 18th.

On average, analysts expect that CarMax will report full-year earnings of $5.80 per share for the current year, with EPS estimates ranging from $5.50 to $6.15. For the next fiscal year, analysts anticipate that the business will report earnings of $6.54 per share, with EPS estimates ranging from $6.20 to $7.00. Zacks’ EPS averages are a mean average based on a survey of research firms that cover CarMax.

CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, March 31st. The company reported $1.27 earnings per share for the quarter, beating analysts’ consensus estimates of $1.26 by $0.01. CarMax had a net margin of 4.01% and a return on equity of 20.30%. The company had revenue of $5.16 billion during the quarter, compared to analysts’ expectations of $5.17 billion. During the same quarter in the previous year, the company earned $1.30 earnings per share. The firm’s revenue for the quarter was up 4.1% on a year-over-year basis.

Several analysts have recently issued reports on KMX shares. Northcoast Research upgraded shares of CarMax from a “neutral” rating to a “buy” rating and set a $130.00 target price on the stock in a research report on Tuesday, January 19th. Robert W. Baird lifted their target price on shares of CarMax from $110.00 to $130.00 and gave the company an “outperform” rating in a research report on Monday, April 5th. Oppenheimer lifted their target price on shares of CarMax from $130.00 to $153.00 and gave the company an “outperform” rating in a research report on Thursday, April 15th. Stephens lifted their target price on shares of CarMax from $130.00 to $154.00 and gave the company an “overweight” rating in a research report on Monday, April 5th. Finally, Wedbush lifted their target price on shares of CarMax from $120.00 to $140.00 and gave the company an “outperform” rating in a research report on Wednesday, February 17th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and ten have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $124.21.

KMX traded up $0.47 on Tuesday, reaching $137.41. The stock had a trading volume of 895,032 shares, compared to its average volume of 1,236,981. CarMax has a 12-month low of $70.72 and a 12-month high of $138.00. The company has a current ratio of 2.60, a quick ratio of 0.67 and a debt-to-equity ratio of 3.51. The business’s 50-day moving average price is $130.81 and its two-hundred day moving average price is $111.65. The company has a market cap of $22.42 billion, a P/E ratio of 30.14, a price-to-earnings-growth ratio of 2.16 and a beta of 1.76.

In other CarMax news, SVP Jon G. Daniels sold 20,129 shares of the business’s stock in a transaction dated Monday, February 8th. The shares were sold at an average price of $127.54, for a total value of $2,567,252.66. Following the transaction, the senior vice president now directly owns 21,609 shares in the company, valued at approximately $2,756,011.86. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Thomas J. Folliard sold 185,120 shares of the business’s stock in a transaction dated Monday, April 12th. The shares were sold at an average price of $131.47, for a total transaction of $24,337,726.40. Following the completion of the transaction, the director now owns 392,076 shares in the company, valued at $51,546,231.72. The disclosure for this sale can be found here. Insiders have sold 214,396 shares of company stock worth $28,060,337 over the last 90 days. 2.09% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of KMX. Norges Bank acquired a new position in CarMax in the 4th quarter valued at about $145,181,000. Viking Global Investors LP purchased a new stake in shares of CarMax in the 4th quarter valued at approximately $75,024,000. Fiera Capital Corp purchased a new stake in shares of CarMax in the 4th quarter valued at approximately $43,427,000. DF Dent & Co. Inc. raised its stake in shares of CarMax by 20.0% in the 4th quarter. DF Dent & Co. Inc. now owns 1,934,042 shares of the company’s stock valued at $182,690,000 after acquiring an additional 322,692 shares during the period. Finally, Renaissance Technologies LLC raised its stake in shares of CarMax by 452.1% in the 4th quarter. Renaissance Technologies LLC now owns 309,200 shares of the company’s stock valued at $29,207,000 after acquiring an additional 253,200 shares during the period. Institutional investors own 97.59% of the company’s stock.

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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