Wedbush Has Bullish Forecast for CarMax FY2025 Earnings

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush raised their FY2025 earnings per share (EPS) estimates for CarMax in a report released on Friday, December 20th. Wedbush analyst S. Basham now forecasts that the company will post earnings of $3.17 per share for the year, up from their prior forecast of $2.95. Wedbush currently has a “Outperform” rating and a $95.00 target price 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 Q4 2025 earnings at $0.54 EPS and Q4 2026 earnings at $0.58 EPS.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The firm 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 firm posted $0.52 EPS. The company’s revenue for the quarter was up 1.2% on a year-over-year basis.

A number of other analysts also recently issued reports on the stock. Stephens started coverage on shares of CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective for the company. Needham & Company LLC boosted their price target on CarMax from $90.00 to $98.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Truist Financial increased their price target on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research report on Friday, December 20th. Mizuho lifted their price objective on CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a report on Friday, December 20th. Finally, Oppenheimer reissued an “outperform” rating and set a $105.00 target price on shares of CarMax in a report on Friday, October 4th. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the stock. According to MarketBeat, CarMax currently has an average rating of “Hold” and an average price target of $85.17.

CarMax Trading Up 1.4 %

Shares of CarMax stock opened at $84.91 on Monday. CarMax has a 52-week low of $65.83 and a 52-week high of $91.25. The stock has a market cap of $13.15 billion, a PE ratio of 31.92, a PEG ratio of 1.76 and a beta of 1.71. The firm has a 50-day moving average of $79.45 and a 200-day moving average of $77.93. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25.

Institutional Investors Weigh In On CarMax

Several hedge funds and other institutional investors have recently made changes to their positions in KMX. Oddo BHF Asset Management Sas bought a new position in shares of CarMax in the 3rd quarter valued at $2,229,000. Franklin Resources Inc. raised its position in CarMax by 53.3% in the third quarter. Franklin Resources Inc. now owns 27,362 shares of the company’s stock valued at $1,999,000 after purchasing an additional 9,509 shares during the last quarter. Tidal Investments LLC raised its position in CarMax by 141.8% in the third quarter. Tidal Investments LLC now owns 13,019 shares of the company’s stock valued at $1,007,000 after purchasing an additional 7,635 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in shares of CarMax during the third quarter valued at about $351,000. Finally, World Investment Advisors LLC bought a new stake in shares of CarMax during the third quarter worth about $6,942,000.

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.