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


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Wall Street analysts forecast that CarMax, Inc. (NYSE:KMX) will post earnings of $1.61 per share for the current quarter, Zacks Investment Research reports. Six analysts have made estimates for CarMax’s earnings, with the lowest EPS estimate coming in at $1.45 and the highest estimate coming in at $1.76. CarMax posted earnings per share of $0.23 during the same quarter last year, which indicates a positive year-over-year growth rate of 600%. The business is expected to report its next quarterly earnings report on Friday, June 18th.

On average, analysts expect that CarMax will report full year earnings of $5.80 per share for the current fiscal year, with EPS estimates ranging from $5.50 to $6.15. For the next financial year, analysts anticipate that the firm will post earnings of $6.54 per share, with EPS estimates ranging from $6.20 to $7.00. Zacks’ earnings per share calculations are a mean average based on a survey of analysts that that provide coverage for CarMax.

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

A number of research analysts have issued reports on the stock. Stephens upped their target price on shares of CarMax from $130.00 to $154.00 and gave the company an “overweight” rating in a report on Monday, April 5th. 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 report on Tuesday, January 19th. Robert W. Baird increased their price objective on shares of CarMax from $110.00 to $130.00 and gave the stock an “outperform” rating in a report on Monday, April 5th. Oppenheimer increased their price objective on shares of CarMax from $130.00 to $153.00 and gave the stock an “outperform” rating in a report on Thursday, April 15th. Finally, Wedbush increased their price objective on shares of CarMax from $120.00 to $140.00 and gave the stock an “outperform” rating in a report on Wednesday, February 17th. Two investment 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’s stock. The stock currently has an average rating of “Buy” and an average price target of $124.21.

In related news, Director Thomas J. Folliard sold 185,120 shares of the stock in a transaction that occurred on 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 sale, the director now owns 392,076 shares of the company’s stock, valued at approximately $51,546,231.72. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Jon G. Daniels sold 20,129 shares of the stock in a transaction that occurred on Monday, February 8th. The stock was sold at an average price of $127.54, for a total transaction of $2,567,252.66. Following the sale, the senior vice president now directly owns 21,609 shares of the company’s stock, valued at approximately $2,756,011.86. The disclosure for this sale can be found here. In the last three months, insiders have sold 214,396 shares of company stock valued at $28,060,337. Corporate insiders own 2.09% of the company’s stock.

A number of large investors have recently modified their holdings of the business. Brown Advisory Inc. grew its position in CarMax by 6.4% in the fourth quarter. Brown Advisory Inc. now owns 2,023,971 shares of the company’s stock valued at $191,185,000 after acquiring an additional 121,117 shares in the last quarter. DF Dent & Co. Inc. grew its position in CarMax by 20.0% in the fourth 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 in the last quarter. Norges Bank acquired a new stake in CarMax in the fourth quarter valued at approximately $145,181,000. Dimensional Fund Advisors LP grew its position in CarMax by 1.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,528,273 shares of the company’s stock valued at $144,366,000 after acquiring an additional 15,856 shares in the last quarter. Finally, Baird Financial Group Inc. grew its position in CarMax by 2.0% in the fourth quarter. Baird Financial Group Inc. now owns 1,426,782 shares of the company’s stock valued at $134,773,000 after acquiring an additional 27,980 shares in the last quarter. 97.59% of the stock is owned by institutional investors.

NYSE: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. The company has a market cap of $22.42 billion, a price-to-earnings ratio of 30.14, a P/E/G ratio of 2.16 and a beta of 1.76. The company has a debt-to-equity ratio of 3.51, a current ratio of 2.60 and a quick ratio of 0.67. The firm’s fifty day moving average is $130.81 and its two-hundred day moving average is $111.65. CarMax has a 12-month low of $70.72 and a 12-month high of $138.00.

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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Earnings History and Estimates for CarMax (NYSE:KMX)

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