CarMax, Inc. (NYSE:KMX) Expected to Post Q2 2025 Earnings of $0.86 Per Share

CarMax, Inc. (NYSE:KMX) – Wedbush lowered their Q2 2025 earnings per share estimates for CarMax in a research report issued on Tuesday, September 17th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.86 for the quarter, down from their prior estimate of $0.94. Wedbush has a “Outperform” rating and a $95.00 price objective on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.99 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.06 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.74 EPS and Q4 2026 earnings at $0.60 EPS.

CarMax (NYSE:KMX) last posted its earnings results on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $7.11 billion for the quarter, compared to analyst estimates of $7.16 billion. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The company’s revenue for the quarter was down 7.5% on a year-over-year basis. During the same quarter last year, the company earned $1.16 earnings per share.

A number of other brokerages also recently issued reports on KMX. Truist Financial upped their price objective on shares of CarMax from $66.00 to $70.00 and gave the stock a “hold” rating in a research report on Monday, June 24th. Mizuho cut their price objective on CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 18th. Royal Bank of Canada raised their target price on CarMax from $73.00 to $75.00 and gave the company an “outperform” rating in a research report on Monday, June 24th. Evercore ISI boosted their price target on shares of CarMax from $68.00 to $72.00 and gave the stock an “in-line” rating in a report on Tuesday, July 16th. Finally, Oppenheimer restated an “outperform” rating and set a $105.00 price target on shares of CarMax in a research report on Monday, June 24th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, CarMax presently has an average rating of “Hold” and an average target price of $76.25.

CarMax Stock Performance

Shares of KMX stock opened at $79.39 on Wednesday. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60. The firm has a 50-day moving average of $80.26 and a 200-day moving average of $76.53. CarMax has a one year low of $59.66 and a one year high of $88.22. The company has a market cap of $12.39 billion, a P/E ratio of 31.01, a P/E/G ratio of 1.53 and a beta of 1.69.

Insider Activity

In other CarMax news, SVP Jon G. Daniels sold 1,231 shares of the firm’s stock in a transaction dated Wednesday, June 26th. The stock was sold at an average price of $72.46, for a total value of $89,198.26. Following the completion of the transaction, the senior vice president now owns 995 shares in the company, valued at approximately $72,097.70. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other news, SVP Jon G. Daniels sold 1,231 shares of the stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the sale, the senior vice president now directly owns 995 shares of the company’s stock, valued at $72,097.70. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Enrique N. Mayor-Mora sold 9,318 shares of the business’s stock in a transaction that occurred on Tuesday, July 16th. The shares were sold at an average price of $83.46, for a total transaction of $777,680.28. Following the transaction, the chief financial officer now directly owns 20,260 shares of the company’s stock, valued at approximately $1,690,899.60. The disclosure for this sale can be found here. Over the last three months, insiders sold 185,243 shares of company stock worth $14,893,042. 1.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CarMax

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in CarMax by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock worth $1,387,222,000 after buying an additional 222,132 shares in the last quarter. Norges Bank purchased a new position in CarMax in the fourth quarter worth $288,278,000. Morningstar Investment Services LLC increased its stake in CarMax by 95.4% in the fourth quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock valued at $211,516,000 after acquiring an additional 1,326,840 shares during the last quarter. First Pacific Advisors LP raised its position in CarMax by 2.0% during the second quarter. First Pacific Advisors LP now owns 2,386,210 shares of the company’s stock valued at $175,005,000 after purchasing an additional 47,184 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in CarMax by 2.6% during the second quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company’s stock worth $147,230,000 after purchasing an additional 51,397 shares during the last quarter.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.