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Valued at a market cap of $13 billion, CarMax, Inc. (KMX) is the largest retailer of used cars in the United States, known for its no-haggle pricing and wide selection of vehicles. Headquartered in Richmond, Virginia, CarMax operates both physical locations and an online platform for buying and selling cars. The company is scheduled to release its Q4 earnings report on Thursday, April 10.
Ahead of this event, analysts expect CarMax to report a profit of $0.62 per share, up 93.8% from $0.32 per share in the year-ago quarter. The company has missed Wall Street's bottom-line estimates in three of the past four quarters while beating on another occasion.
For fiscal year 2025, analysts expect the company to report EPS of $3.25, up 7.6% from $3.02 in fiscal 2024.
Over the past year, KMX has rallied 21.6%, trailing behind the broader S&P 500 Index's ($SPX) nearly 24.1% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 34.9% gains over the same time frame.
On Dec. 19, KMX shares soared over 3% after reporting its Q3 results. CarMax’s EPS of $0.81 and revenue of $6.2 billion exceeded expectations in its recent quarter, driven by increased unit sales, with a 5.4% year-over-year rise in retail used vehicle sales. The company benefitted from stable vehicle valuations, which supported improved margins and a 7.6% year-over-year increase in Auto Finance income, driven by a wider spread between consumer charges and funding costs.
Analysts' consensus rating on CarMax stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, opinions include five "Strong Buys," three "Moderate Buys," six "Holds," one "Moderate Sell," and two "Strong Sell."
KMX currently trades above the average analyst price target of $84.57.
