What is Zacks Research’s Forecast for CarMax Q4 Earnings?

CarMax, Inc. (NYSE:KMX) – Analysts at Zacks Research cut their Q4 2026 earnings estimates for shares of CarMax in a note issued to investors on Wednesday, January 15th. Zacks Research analyst R. Department now forecasts that the company will post earnings of $0.75 per share for the quarter, down from their previous forecast of $0.91. The consensus estimate for CarMax’s current full-year earnings is $3.19 per share.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share (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 analysts’ expectations of $6.05 billion. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The business’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share.

A number of other brokerages have also recently issued reports on KMX. Stephens initiated coverage on shares of CarMax in a report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price objective for the company. Royal Bank of Canada raised their price target on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday, December 19th. Wedbush reiterated an “outperform” rating and issued a $95.00 price objective on shares of CarMax in a research report on Wednesday, October 16th. Evercore ISI raised their price objective on shares of CarMax from $83.00 to $85.00 and gave the stock a “market perform” rating in a report on Thursday, December 19th. Finally, BNP Paribas raised CarMax to a “strong sell” rating in a research note on Friday, September 27th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $85.17.

CarMax Price Performance

Shares of KMX opened at $79.55 on Monday. The stock has a market cap of $12.23 billion, a P/E ratio of 26.96, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The stock’s 50-day moving average price is $82.17 and its two-hundred day moving average price is $79.24. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92.

Insider Activity at CarMax

In other CarMax news, CEO William D. Nash sold 120,513 shares of CarMax stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the completion of the transaction, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $15,123,292.92. The trade was a 39.88 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Mohammad Shamim sold 10,000 shares of the business’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.77, for a total value of $837,700.00. Following the completion of the transaction, the executive vice president now directly owns 11,738 shares of the company’s stock, valued at approximately $983,292.26. This trade represents a 46.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 259,598 shares of company stock worth $21,503,625 in the last ninety days. 1.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently modified their holdings of KMX. Geneos Wealth Management Inc. grew its position in CarMax by 5.9% during the 4th quarter. Geneos Wealth Management Inc. now owns 20,113 shares of the company’s stock worth $1,644,000 after acquiring an additional 1,120 shares during the last quarter. Exchange Traded Concepts LLC grew its holdings in CarMax by 13.5% during the 4th quarter. Exchange Traded Concepts LLC now owns 8,187 shares of the company’s stock worth $669,000 after acquiring an additional 975 shares during the last quarter. True North Advisors LLC increased its position in CarMax by 0.5% in the 4th quarter. True North Advisors LLC now owns 48,662 shares of the company’s stock valued at $3,979,000 after acquiring an additional 225 shares during the period. Dakota Wealth Management raised its stake in shares of CarMax by 1.5% during the fourth quarter. Dakota Wealth Management now owns 14,720 shares of the company’s stock valued at $1,204,000 after acquiring an additional 215 shares during the last quarter. Finally, Ballentine Partners LLC acquired a new position in shares of CarMax during the fourth quarter worth $217,000.

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.