Analysts Issue Forecasts for CarMax’s Q4 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Wedbush decreased their Q4 2025 earnings per share (EPS) estimates for shares of CarMax in a report released on Tuesday, December 17th. Wedbush analyst S. Basham now anticipates that the company will post earnings of $0.56 per share 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 weighed in on KMX. Royal Bank of Canada reiterated an “outperform” rating and issued a $82.00 price objective on shares of CarMax in a report on Wednesday, October 16th. JPMorgan Chase & Co. raised their price objective on shares of CarMax from $65.00 to $70.00 and gave the stock an “underweight” rating in a research report on Thursday, December 5th. Needham & Company LLC restated a “buy” rating and issued a $90.00 price objective on shares of CarMax in a report on Wednesday, October 16th. Evercore ISI boosted their price objective on CarMax from $81.00 to $83.00 and gave the company an “in-line” rating in a report on Tuesday, December 3rd. Finally, Stephens began coverage on shares of CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective on the stock. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, CarMax currently has an average rating of “Hold” and an average price target of $81.00.

CarMax Stock Performance

KMX traded up $2.97 during midday trading on Thursday, hitting $84.39. 1,658,185 shares of the company were exchanged, compared to its average volume of 1,919,445. The firm has a market capitalization of $13.07 billion, a price-to-earnings ratio of 31.73, a price-to-earnings-growth ratio of 1.76 and a beta of 1.71. CarMax has a 1-year low of $65.83 and a 1-year high of $91.25. The company’s 50 day simple moving average is $78.50 and its 200 day simple moving average is $77.50. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.19. The business had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The company’s quarterly revenue was up 1.2% on a year-over-year basis. During the same quarter last year, the company earned $0.52 earnings per share.

Institutional Investors Weigh In On CarMax

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Quarry LP lifted its stake in CarMax by 78.6% during the second 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 acquired a new stake in CarMax in the 3rd quarter valued at about $32,000. True Wealth Design LLC boosted its holdings in CarMax by 4,844.4% during the third 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% in the second quarter. Blue Trust Inc. now owns 501 shares of the company’s stock valued at $37,000 after buying an additional 287 shares in the last quarter. Finally, Studio Investment Management LLC boosted its position in shares of CarMax by 176.7% in the 2nd 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 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.