William Blair Issues Optimistic Forecast for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Analysts at William Blair raised their FY2025 earnings estimates for shares of CarMax in a research report issued to clients and investors on Thursday, December 19th. William Blair analyst S. Zackfia now forecasts that the company will post earnings of $3.28 per share for the year, up from their previous estimate of $3.05. The consensus estimate for CarMax’s current full-year earnings is $3.01 per share. William Blair also issued estimates for CarMax’s Q4 2025 earnings at $0.65 EPS, Q1 2026 earnings at $1.26 EPS, Q2 2026 earnings at $1.00 EPS, Q3 2026 earnings at $0.76 EPS, Q4 2026 earnings at $0.76 EPS, FY2026 earnings at $3.78 EPS and FY2027 earnings at $4.36 EPS.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. The firm had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.05 billion. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The company’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.52 earnings per share.

Several other equities analysts also recently issued reports on the company. Stephens started coverage on CarMax in a research report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective for the company. Truist Financial lifted their price target on CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a report on Friday, December 20th. Royal Bank of Canada increased their price objective on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. JPMorgan Chase & Co. raised their price target on shares of CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a report on Friday, December 20th. Finally, BNP Paribas raised CarMax to a “strong sell” rating in a report on Friday, September 27th. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $85.17.

CarMax Stock Up 1.4 %

Shares of KMX opened at $84.91 on Monday. The company has a market capitalization of $13.15 billion, a P/E ratio of 31.92, a PEG ratio of 1.76 and a beta of 1.71. CarMax has a one year low of $65.83 and a one year high of $91.25. The business’s 50 day simple moving average is $79.45 and its 200-day simple moving average is $77.93. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68.

Hedge Funds Weigh In On CarMax

Several hedge funds have recently added to or reduced their stakes in KMX. FMR LLC boosted its position in shares of CarMax by 2,883.1% during the third quarter. FMR LLC now owns 1,772,808 shares of the company’s stock worth $137,180,000 after purchasing an additional 1,713,379 shares in the last quarter. Vulcan Value Partners LLC raised its stake in CarMax by 299.7% during the 2nd quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock worth $133,773,000 after buying an additional 1,369,986 shares during the period. Holocene Advisors LP lifted its holdings in CarMax by 740.2% during the third quarter. Holocene Advisors LP now owns 946,931 shares of the company’s stock worth $73,274,000 after acquiring an additional 834,232 shares in the last quarter. Marshall Wace LLP lifted its holdings in CarMax by 87.6% during the second quarter. Marshall Wace LLP now owns 1,160,601 shares of the company’s stock worth $85,118,000 after acquiring an additional 541,967 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in CarMax by 41.8% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,479,340 shares of the company’s stock valued at $114,471,000 after acquiring an additional 436,342 shares during the period.

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.