CarMax Readies for Earnings Release Amid Analyst Updates
Anticipated Earnings Announcement from CarMax
CarMax, Inc. (NYSE: KMX) is gearing up for its second quarter earnings announcement, which is expected to happen before the opening bell on a Thursday in late September. Analysts are particularly keen to see whether the Richmond-based auto retailer will meet or exceed expectations this quarter.
Expectations for Earnings and Revenue
Industry analysts anticipate that CarMax will report earnings of approximately $1.03 per share, a notable increase compared to the 85 cents per share recorded in the same period last year. This bolstering in earnings reflects confidence in CarMax's operational capabilities, driven by solid retail sales performance. Expected quarterly revenues are projected to reach about $7.02 billion, slightly above last year’s figure of $7.01 billion.
CarMax's Recent Financial Performance
Earlier in the year, on June 20, CarMax posted better-than-expected earnings results for the first quarter, showcasing an increase in revenue thanks to stronger retail sales and enhanced profit margins. The company’s remarkable performance during this period prompted a focused look into what could be achieved in the upcoming announcement.
Stock Market Performance
As of recent trading sessions, CarMax shares experienced a minor decline of 0.9%, finishing at $57.60. Despite this small dip, the stock has attracted attention as investors weigh its potential against analyst predictions. Keeping an eye on CarMax's price movements could provide insights for potential investors and stakeholders.
Analyst Ratings and Price Targets
Analysts have shared a range of ratings for CarMax, reflecting diverse viewpoints on its stock performance:
- Rajat Gupta, an analyst at JP Morgan, has maintained a Neutral rating while increasing the price target from $58 to $65, noting a 75% accuracy rate in his forecasts.
- Scott Devitt of Wedbush reaffirmed an Outperform rating with a more ambitious price target of $84, based on an impressive 83% accuracy in his analysis.
- Jeff Lick from Stephens & Co. also reiterated an Overweight rating, establishing a price target of $81 based on his 78% accuracy in predictions.
- David Bellinger from Mizuho maintained a Neutral stance but adjusted the price target down from $80 to $78, supported by a 61% accuracy mark.
- Scot Ciccarelli at Truist Securities retained a Hold rating, raising the price target slightly from $72 to $74, with a 74% accuracy rate.
Investing in CarMax: What Analysts Recommend
For those considering investing in KMX stock, these mixed yet insightful ratings provide a foundation for potential investment decisions. Each analyst brings their own perspective to the table, often shaped by the company’s recent performance, planned expansions, and the overall market conditions.
Frequently Asked Questions
What earnings per share is CarMax expected to report?
Analysts expect CarMax to report earnings of about $1.03 per share for the upcoming quarter.
What was CarMax's revenue in the previous quarter?
In the previous year, CarMax reported quarterly revenue of approximately $7.01 billion.
What recent performance has CarMax displayed?
CarMax delivered better-than-expected first-quarter earnings and revenue, which were driven by strong retail sales.
What is the current stock price for CarMax?
The stock is currently trading at around $57.60 after a 0.9% decline.
How are analysts rating CarMax stock?
Analysts have varying ratings, with some maintaining Neutral ratings while others have given Outperform and Overweight ratings, indicating mixed expectations for the stock.
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