
Used automotive vehicle retailer Carmax (NYSE: KMX) will be reporting results this Thursday before the bell. Here’s what investors should know.
CarMax missed analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $6.59 billion, down 6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
Is CarMax a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CarMax’s revenue to decline 9.9% year on year to $5.61 billion, a reversal from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CarMax has missed Wall Street’s revenue estimates five times over the last two years.
Looking at CarMax’s peers in the automotive and marine retail segment, only AutoZone has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 8.2%. The stock was down 9.2% on the results.
Read our full analysis of AutoZone’s earnings results here.There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 17% on average over the last month. CarMax is up 26.5% during the same time and is heading into earnings with an average analyst price target of $39.92 (compared to the current share price of $40.40).
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