Wedbush Has Positive Outlook of CarMax FY2025 Earnings

CarMax, Inc. (NYSE:KMX) – Investment analysts at Wedbush boosted their FY2025 earnings estimates for CarMax in a report issued on Friday, December 20th. Wedbush analyst S. Basham now expects that the company will post earnings of $3.17 per share for the year, up from their previous forecast of $2.95. 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 $3.01 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.54 EPS and Q4 2026 earnings at $0.58 EPS.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.19. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The company had revenue of $6.22 billion during the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the prior year, the firm posted $0.52 earnings per share. The business’s quarterly revenue was up 1.2% on a year-over-year basis.

Other equities research analysts have also issued reports about the stock. Evercore ISI upped their price objective on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday, December 19th. Oppenheimer reaffirmed an “outperform” rating and set a $105.00 price target on shares of CarMax in a research report on Friday, October 4th. Mizuho lifted their price objective on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, December 20th. Truist Financial upped their target price on CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research report on Friday, December 20th. Finally, StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a research note on Friday, December 20th. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, CarMax has a consensus rating of “Hold” and an average target price of $85.17.

CarMax Stock Performance

NYSE:KMX opened at $84.91 on Monday. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. CarMax has a fifty-two week low of $65.83 and a fifty-two week high of $91.25. The company has a 50 day simple moving average of $79.45 and a two-hundred day simple moving average of $77.93. The company has a market capitalization of $13.15 billion, a PE ratio of 31.92, a P/E/G ratio of 1.76 and a beta of 1.71.

Hedge Funds Weigh In On CarMax

A number of large investors have recently modified their holdings of the company. Quarry LP increased its stake in CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock valued at $31,000 after purchasing an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC bought a new stake in shares of CarMax during the third quarter worth about $32,000. True Wealth Design LLC increased its position in shares of CarMax by 4,844.4% during the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after acquiring an additional 436 shares in the last quarter. Studio Investment Management LLC raised its holdings in shares of CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock worth $38,000 after acquiring an additional 334 shares during the last quarter. Finally, Larson Financial Group LLC lifted its position in CarMax by 91.9% in the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock valued at $57,000 after acquiring an additional 353 shares in 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.