A Peek at CarMax's Future Earnings

CarMax (NYSE:KMX) is gearing up to announce its quarterly earnings on Thursday, 2025-09-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that CarMax will report an earnings per share (EPS) of $1.03.

The announcement from CarMax is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.21, leading to a 0.0% drop in the share price the following trading session.

Here's a look at CarMax's past performance and the resulting price change:

Tracking CarMax's Stock Performance

Shares of CarMax were trading at $57.6 as of September 23. Over the last 52-week period, shares are down 26.17%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about CarMax

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding CarMax.

With 8 analyst ratings, CarMax has a consensus rating of Outperform. The average one-year price target is $75.12, indicating a potential 30.42% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Lithia Motors, AutoNation and Murphy USA, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Lithia Motors, with an average 1-year price target of $359.88, suggesting a potential 524.79% upside.
• Analysts currently favor an Neutral trajectory for AutoNation, with an average 1-year price target of $219.0, suggesting a potential 280.21% upside.
• Analysts currently favor an Outperform trajectory for Murphy USA, with an average 1-year price target of $460.0, suggesting a potential 698.61% upside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for Lithia Motors, AutoNation and Murphy USA, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

CarMax ranks first in revenue growth among its peers. It ranks second in gross profit. It ranks last in return on equity.

About CarMax

CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2025, the company retailed and wholesaled 789,050 and 544,312 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in calendar 2024. It seeks over 5% share. CarMax is based in Richmond, Virginia.

CarMax: Financial Performance Dissected

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: CarMax's remarkable performance in 3 months is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 6.09%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: CarMax's net margin is impressive, surpassing industry averages. With a net margin of 2.79%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): CarMax's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.36%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.77%, the company showcases effective utilization of assets.

Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.07, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for CarMax visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.