Wedbush Research Analysts Lift Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX) – Wedbush raised their Q3 2025 earnings per share (EPS) estimates for CarMax in a research note issued to investors on Tuesday, December 17th. Wedbush analyst S. Basham now anticipates that the company will post earnings per share of $0.57 for the quarter, up from their prior forecast of $0.51. 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 $3.01 per share. Wedbush also issued estimates for CarMax’s FY2025 earnings at $2.95 EPS, Q1 2026 earnings at $1.30 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.71 EPS, Q4 2026 earnings at $0.60 EPS and FY2026 earnings at $3.62 EPS.

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 business had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The firm’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.52 EPS.

A number of other research analysts have also weighed in on KMX. StockNews.com upgraded shares of CarMax from a “sell” rating to a “hold” rating in a research note on Friday. BNP Paribas upgraded CarMax to a “strong sell” rating in a research note on Friday, September 27th. Needham & Company LLC increased their price objective on CarMax from $90.00 to $98.00 and gave the stock a “buy” rating in a report on Friday. JPMorgan Chase & Co. lifted their target price on CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a report on Friday. Finally, Royal Bank of Canada upped their price target on CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research report on Thursday. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $85.17.

CarMax Stock Performance

NYSE KMX opened at $84.27 on Friday. The firm has a market cap of $13.06 billion, a P/E ratio of 31.68, a price-to-earnings-growth ratio of 1.76 and a beta of 1.71. The company has a quick ratio of 0.68, a current ratio of 2.25 and a debt-to-equity ratio of 2.93. The company’s 50 day moving average is $79.01 and its 200-day moving average is $77.64. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25.

Hedge Funds Weigh In On CarMax

Large investors have recently modified their holdings of the company. Quarry LP raised its position in CarMax by 78.6% in the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after purchasing an additional 184 shares during the period. Catalyst Capital Advisors LLC purchased a new position in shares of CarMax in the third quarter worth about $32,000. True Wealth Design LLC boosted its holdings in CarMax by 4,844.4% during the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after acquiring an additional 436 shares during the period. Blue Trust Inc. grew its position in CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after acquiring an additional 287 shares during the last quarter. Finally, Studio Investment Management LLC lifted its position in CarMax by 176.7% in the second quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after purchasing an additional 334 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.