CarMax, Inc. (NYSE:KMX) Expected to Post Quarterly Sales of $6.04 Billion

Wall Street analysts expect CarMax, Inc. (NYSE:KMX) to report sales of $6.04 billion for the current quarter, Zacks Investment Research reports. Six analysts have provided estimates for CarMax’s earnings. The highest sales estimate is $6.27 billion and the lowest is $5.80 billion. CarMax reported sales of $3.23 billion in the same quarter last year, which indicates a positive year over year growth rate of 87%. The company is expected to issue its next earnings results before the market opens on Friday, June 25th.

On average, analysts expect that CarMax will report full year sales of $22.68 billion for the current year, with estimates ranging from $22.19 billion to $23.63 billion. For the next fiscal year, analysts expect that the firm will post sales of $24.50 billion, with estimates ranging from $23.49 billion to $26.06 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of research analysts that follow CarMax.

CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, March 31st. The company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.26 by $0.01. The firm had revenue of $5.16 billion for the quarter, compared to analyst estimates of $5.17 billion. CarMax had a net margin of 3.94% and a return on equity of 19.42%. CarMax’s quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.30 earnings per share.

KMX has been the topic of a number of recent analyst reports. Robert W. Baird lifted their price target on CarMax from $110.00 to $130.00 and gave the company an “outperform” rating in a report on Monday, April 5th. Oppenheimer lifted their price objective on shares of CarMax from $130.00 to $153.00 and gave the company an “outperform” rating in a research note on Friday, April 9th. Wedbush reissued a “neutral” rating and set a $130.00 target price (down previously from $155.00) on shares of CarMax in a research note on Tuesday, May 25th. Royal Bank of Canada increased their price objective on shares of CarMax from $140.00 to $148.00 and gave the company an “outperform” rating in a report on Monday, April 5th. Finally, Seaport Global Securities cut CarMax from a “buy” rating to a “neutral” rating in a research note on Wednesday, March 31st. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and nine have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $123.50.

NYSE:KMX remained flat at $$115.00 during mid-day trading on Friday. 911,445 shares of the company traded hands, compared to its average volume of 1,214,481. CarMax has a 12-month low of $84.70 and a 12-month high of $138.77. The company has a debt-to-equity ratio of 3.35, a current ratio of 2.42 and a quick ratio of 0.56. The firm has a market capitalization of $18.76 billion, a PE ratio of 25.71, a PEG ratio of 1.29 and a beta of 1.65. The company’s 50 day moving average price is $124.48.

In related news, Director Thomas J. Folliard sold 185,120 shares of CarMax stock in a transaction on Monday, April 12th. The shares were sold at an average price of $131.47, for a total value of $24,337,726.40. Following the completion of the sale, the director now owns 392,076 shares of the company’s stock, valued at approximately $51,546,231.72. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.76% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the business. Janus Henderson Group PLC lifted its stake in shares of CarMax by 0.5% in the first quarter. Janus Henderson Group PLC now owns 4,150,232 shares of the company’s stock worth $550,570,000 after buying an additional 19,950 shares during the last quarter. Geode Capital Management LLC grew its position in shares of CarMax by 1.7% in the first quarter. Geode Capital Management LLC now owns 2,702,212 shares of the company’s stock valued at $357,499,000 after purchasing an additional 44,139 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of CarMax by 2.4% in the first quarter. JPMorgan Chase & Co. now owns 2,565,188 shares of the company’s stock worth $340,297,000 after purchasing an additional 60,363 shares during the period. Brown Advisory Inc. lifted its position in shares of CarMax by 6.4% during the 4th quarter. Brown Advisory Inc. now owns 2,023,971 shares of the company’s stock worth $191,185,000 after purchasing an additional 121,117 shares during the last quarter. Finally, DF Dent & Co. Inc. boosted its stake in CarMax by 20.0% during the 4th quarter. DF Dent & Co. Inc. now owns 1,934,042 shares of the company’s stock valued at $182,690,000 after purchasing an additional 322,692 shares during the period. 93.26% of the stock is owned by hedge funds and other institutional investors.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through whole auctions.

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