Used automotive vehicle retailer Carmax (NYSE: KMX) will be reporting earnings this Wednesday morning. Here’s what you need to know.
CarMax beat analysts’ revenue expectations last quarter, reporting revenues of $5.95 billion, flat year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat 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, the market is expecting CarMax’s revenue to decline 1.8% year on year, a reversal from the 6.1% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing mostly upward revisions over the last 30 days. CarMax has missed Wall Street’s revenue estimates multiple 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 missed analysts’ revenue estimates, delivering year-on-year sales growth of 8.4%. The stock was down 11.1% 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 10.5% on average over the last month. CarMax is up 40.4% during the same time and is heading into earnings with an average analyst price target of $42.69 (compared to the current share price of $52).
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