Zacks Research Weighs in on CarMax’s Q1 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Zacks Research decreased their Q1 2026 earnings estimates for CarMax in a research report issued on Wednesday, February 19th. Zacks Research analyst R. Department now anticipates that the company will post earnings of $1.25 per share for the quarter, down from their prior forecast of $1.28. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q2 2026 earnings at $0.98 EPS, Q3 2026 earnings at $0.81 EPS, FY2026 earnings at $3.78 EPS, Q2 2027 earnings at $1.00 EPS, Q3 2027 earnings at $1.16 EPS and FY2027 earnings at $4.36 EPS.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.19. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.05 billion. During the same period last year, the company earned $0.52 earnings per share. CarMax’s quarterly revenue was up 1.2% compared to the same quarter last year.

Several other research firms also recently commented on KMX. StockNews.com upgraded CarMax from a “sell” rating to a “hold” rating in a research report on Friday, December 20th. Royal Bank of Canada upped their price objective on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. Needham & Company LLC increased their price target on CarMax from $98.00 to $101.00 and gave the company a “buy” rating in a research note on Monday, February 3rd. Truist Financial boosted their price objective on shares of CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a report on Friday, December 20th. Finally, Evercore ISI upgraded CarMax from an “in-line” rating to an “outperform” rating and boosted their price objective for the company from $90.00 to $110.00 in a research report on Thursday, February 6th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, CarMax currently has an average rating of “Hold” and an average target price of $87.50.

CarMax Trading Down 3.5 %

Shares of CarMax stock opened at $82.62 on Monday. The company’s fifty day simple moving average is $83.39 and its 200-day simple moving average is $80.15. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The company has a market cap of $12.71 billion, a price-to-earnings ratio of 28.01, a PEG ratio of 1.67 and a beta of 1.72.

Insider Buying and Selling

In other news, VP Jill A. Livesay sold 13,009 shares of the stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $81.00, for a total value of $1,053,729.00. Following the transaction, the vice president now directly owns 9,448 shares of the company’s stock, valued at $765,288. This represents a 57.93 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jon G. Daniels sold 30,245 shares of the business’s stock in a transaction that occurred on Tuesday, December 24th. The stock was sold at an average price of $84.34, for a total value of $2,550,863.30. Following the sale, the senior vice president now owns 995 shares of the company’s stock, valued at approximately $83,918.30. This represents a 96.81 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 264,467 shares of company stock worth $21,915,445. Insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Institutional investors have recently bought and sold shares of the business. Ascent Group LLC lifted its position in CarMax by 7.0% during the fourth quarter. Ascent Group LLC now owns 54,315 shares of the company’s stock worth $4,441,000 after purchasing an additional 3,530 shares during the period. Forum Financial Management LP raised its position in shares of CarMax by 15.2% in the 4th quarter. Forum Financial Management LP now owns 3,878 shares of the company’s stock valued at $317,000 after buying an additional 512 shares in the last quarter. WCG Wealth Advisors LLC lifted its holdings in shares of CarMax by 5.2% during the 4th quarter. WCG Wealth Advisors LLC now owns 46,793 shares of the company’s stock worth $3,826,000 after acquiring an additional 2,333 shares during the period. Focus Partners Advisor Solutions LLC acquired a new stake in shares of CarMax during the 4th quarter worth approximately $207,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in CarMax by 10.7% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,672,485 shares of the company’s stock valued at $136,742,000 after acquiring an additional 162,160 shares during 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.