CarMax, Inc. Expected to Earn Q2 2025 Earnings of $0.86 Per Share (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Wedbush reduced their Q2 2025 earnings per share estimates for CarMax in a research report issued on Tuesday, September 17th. Wedbush analyst S. Basham now expects that the company will post earnings per share of $0.86 for the quarter, down from their prior estimate of $0.94. Wedbush currently has a “Outperform” rating and a $95.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.99 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.06 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.74 EPS and Q4 2026 earnings at $0.60 EPS.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.03. The company had revenue of $7.11 billion during the quarter, compared to analyst estimates of $7.16 billion. CarMax had a net margin of 1.55% and a return on equity of 6.64%. The firm’s revenue for the quarter was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.16 earnings per share.

Several other research firms also recently commented on KMX. Needham & Company LLC dropped their price objective on CarMax from $91.00 to $87.00 and set a “buy” rating on the stock in a research note on Monday, June 24th. JPMorgan Chase & Co. upped their price target on CarMax from $55.00 to $65.00 and gave the company an “underweight” rating in a research report on Thursday. Evercore ISI lifted their price objective on CarMax from $68.00 to $72.00 and gave the stock an “in-line” rating in a report on Tuesday, July 16th. Royal Bank of Canada upped their price objective on shares of CarMax from $73.00 to $75.00 and gave the company an “outperform” rating in a report on Monday, June 24th. Finally, StockNews.com upgraded shares of CarMax to a “sell” rating in a research note on Friday, July 26th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, CarMax presently has a consensus rating of “Hold” and an average target price of $77.08.

CarMax Stock Performance

Shares of KMX stock opened at $77.39 on Wednesday. CarMax has a 52 week low of $59.66 and a 52 week high of $88.22. The firm’s 50-day simple moving average is $80.41 and its two-hundred day simple moving average is $76.54. The firm has a market cap of $12.08 billion, a price-to-earnings ratio of 30.23, a P/E/G ratio of 1.53 and a beta of 1.69. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50.

Insider Activity at CarMax

In other news, CFO Enrique N. Mayor-Mora sold 9,318 shares of the firm’s stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $83.46, for a total transaction of $777,680.28. Following the completion of the transaction, the chief financial officer now owns 20,260 shares in the company, valued at $1,690,899.60. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other CarMax news, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction dated Thursday, July 11th. The shares were sold at an average price of $79.62, for a total value of $9,554,400.00. Following the transaction, the chief executive officer now directly owns 181,683 shares in the company, valued at approximately $14,465,600.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Enrique N. Mayor-Mora sold 9,318 shares of CarMax stock in a transaction dated Tuesday, July 16th. The shares were sold at an average price of $83.46, for a total value of $777,680.28. Following the completion of the sale, the chief financial officer now owns 20,260 shares of the company’s stock, valued at $1,690,899.60. The disclosure for this sale can be found here. In the last quarter, insiders have sold 185,243 shares of company stock worth $14,893,042. 1.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. First Community Trust NA purchased a new position in shares of CarMax in the 2nd quarter valued at approximately $29,000. Quarry LP raised its holdings in shares of CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after buying an additional 184 shares during the last quarter. Blue Trust Inc. grew its holdings in shares of CarMax by 134.1% during the second quarter. Blue Trust Inc. now owns 501 shares of the company’s stock valued at $37,000 after buying an additional 287 shares during the last quarter. Studio Investment Management LLC increased its position in shares of CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after acquiring an additional 334 shares during the period. Finally, Headlands Technologies LLC purchased a new position in CarMax in the 1st quarter worth $55,000.

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.