Wedbush Issues Pessimistic Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Analysts at Wedbush reduced their Q4 2025 earnings per share (EPS) estimates for 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 of $0.56 per share for the quarter, down from their previous forecast of $0.60. 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 FY2027 earnings at $4.26 EPS.

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

A number of other research firms have also issued reports on KMX. StockNews.com raised shares of CarMax from a “sell” rating to a “hold” rating in a report on Friday. Royal Bank of Canada increased their price target on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday. Evercore ISI lifted 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. Mizuho raised their price target on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a report on Friday, September 27th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $85.17.

CarMax Trading Up 0.0 %

Shares of NYSE:KMX opened at $84.27 on Thursday. The business has a 50 day moving average of $78.77 and a two-hundred day moving average of $77.55. The company has a market capitalization of $13.06 billion, a PE ratio of 31.68, a PEG ratio of 1.76 and a beta of 1.71. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93.

Hedge Funds Weigh In On CarMax

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP increased its holdings in CarMax by 78.6% during 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 last quarter. Catalyst Capital Advisors LLC bought a new stake in CarMax in the 3rd quarter valued at about $32,000. True Wealth Design LLC grew its holdings in CarMax by 4,844.4% in the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after buying an additional 436 shares in the last quarter. Blue Trust Inc. increased its holdings in shares of CarMax by 134.1% during the second quarter. Blue Trust Inc. now owns 501 shares of the company’s stock valued at $37,000 after purchasing an additional 287 shares during the period. Finally, Studio Investment Management LLC raised its stake in shares of CarMax by 176.7% during 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 in the last quarter.

CarMax Company Profile

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.