CarMax (NYSE:KMX) Announces Earnings Results

CarMax (NYSE:KMX) released its quarterly earnings data on Tuesday. The company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.43, FiscalAI reports. The company had revenue of $7.88 billion during the quarter, compared to analyst estimates of $7.09 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%.

CarMax Stock Down 1.6%

Shares of CarMax stock opened at $56.31 on Tuesday. The company has a market capitalization of $7.99 billion, a P/E ratio of 36.80, a PEG ratio of 2.62 and a beta of 1.17. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The business’s fifty day moving average price is $59.52 and its two-hundred day moving average price is $50.08. CarMax has a 1-year low of $30.26 and a 1-year high of $65.28.

Key CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Fiscal second-quarter revenue increased 19.5% to approximately $7.9 billion, while combined retail and wholesale unit sales rose 14.7% to 387,735. Comparable-store used-vehicle sales increased 13.0%, indicating broad-based volume growth. CarMax Reports Second Quarter Fiscal 2027 Results
• Positive Sentiment: CarMax reported adjusted or GAAP EPS of $1.16, well above the $0.73 analyst consensus, and revenue of $7.88 billion versus expectations of $7.09 billion. The earnings beat is the primary catalyst behind the stock’s advance. CarMax Earnings Results
• Positive Sentiment: Management announced leadership appointments supporting its “Shift into GEAR” strategy, including a new chief digital and customer officer role intended to unify the customer experience and support future growth. CarMax Leadership Appointments
• Neutral Sentiment: Options markets were pricing a potentially sizable move around the earnings release, highlighting elevated volatility but not establishing a clear longer-term direction. Options Volatility and Implied Earnings Moves
• Negative Sentiment: Gross profit per retail used vehicle declined $111 to $2,105 as CarMax continued pricing actions. This margin pressure could limit the benefit of higher sales volumes and remains a risk for the stock’s valuation.

Analyst Ratings Changes

KMX has been the topic of several analyst reports. JPMorgan Chase & Co. lifted their price target on shares of CarMax from $60.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, September 18th. Stephens lifted their target price on CarMax from $66.00 to $74.00 and gave the stock an “overweight” rating in a research report on Friday. Mizuho increased their target price on CarMax from $38.00 to $43.00 and gave the company a “neutral” rating in a research note on Thursday, June 18th. Barclays raised shares of CarMax from an “underweight” rating to an “equal weight” rating and upped their price target for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Finally, Weiss Ratings raised shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, July 20th. Two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $53.15.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.