Wedbush Issues Pessimistic Forecast for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Investment analysts at Wedbush lowered their Q4 2025 earnings per share estimates for shares of CarMax in a research report issued to clients and investors on Tuesday, December 17th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.56 for the quarter, down from their prior forecast of $0.60. Wedbush has a “Outperform” rating and a $95.00 price target 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 FY2027 earnings at $4.26 EPS.

A number of other brokerages have also recently commented on KMX. Evercore ISI upped their target price on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a report on Thursday. Needham & Company LLC reaffirmed a “buy” rating and set a $90.00 price objective on shares of CarMax in a research note on Wednesday, October 16th. Truist Financial lifted their target price on CarMax from $70.00 to $75.00 and gave the company a “hold” rating in a research note on Monday, September 23rd. Oppenheimer restated an “outperform” rating and set a $105.00 price target on shares of CarMax in a research note on Friday, October 4th. Finally, BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a research report on Friday, September 27th. Four research analysts have rated the stock with a sell rating, five have issued a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat, CarMax presently has an average rating of “Hold” and an average price target of $82.58.

CarMax Stock Up 3.5 %

Shares of NYSE:KMX opened at $84.23 on Thursday. CarMax has a 1-year low of $65.83 and a 1-year high of $91.25. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. The stock has a market cap of $13.05 billion, a P/E ratio of 31.67, a P/E/G ratio of 1.76 and a beta of 1.71. The firm has a fifty day moving average price of $78.77 and a 200 day moving average price of $77.55.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The business 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 last year, the firm posted $0.52 earnings per share.

Institutional Investors Weigh In On CarMax

Several institutional investors have recently made changes to their positions in KMX. FMR LLC lifted its stake in shares of CarMax by 2,883.1% in the third quarter. FMR LLC now owns 1,772,808 shares of the company’s stock valued at $137,180,000 after purchasing an additional 1,713,379 shares during the period. Vulcan Value Partners LLC increased its holdings in CarMax by 299.7% in the second quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock valued at $133,773,000 after buying an additional 1,369,986 shares in the last quarter. Holocene Advisors LP lifted its position in shares of CarMax by 740.2% during the 3rd quarter. Holocene Advisors LP now owns 946,931 shares of the company’s stock valued at $73,274,000 after acquiring an additional 834,232 shares during the period. Marshall Wace LLP boosted its stake in shares of CarMax by 87.6% during the 2nd 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 holdings in shares of CarMax by 41.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,479,340 shares of the company’s stock worth $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.