CarMax, Inc KMX is scheduled to announce its first quarter (fiscal 2016) financial results on Friday morning, before the market opens. And, according to Estimize, the company is expected to deliver a record quarter, with earnings hitting a historic high.
In the same quarter last year, the car dealer reported earnings of $0.76 per share on revenue of $3.75 billion. For the current quarter, expectations point towards a year-over-year growth rate of at least 21 percent.
The crowd projects consensus earnings of $0.92 per share on revenue of $4.219 billion. The Street is even more bullish, and models consensus earnings of $0.98 per share on sales of $4.571 billion.
However, it should be noted from the chart above that CarMax has a history of falling short of the Street’s expectations, while sometimes meeting the crowd’s. So, it would be no surprise to see earnings fall somewhere between $0.98 per share and $0.92 per share this quarter.
An Oppenheimer Top Pick
In a recently issued report, Oppenheimer analyst Ari Wald shares the firm’s top stock pick in each of nine market sectors, based on technical analysis and overall score.
Related Link: Oppenheimer's Top Stock Pick In 9 Different Sectors
Among consumer discretionary stocks, Oppenheimer selected CarMax (Buy rated). A recent Benzinga article (linked above) explicates, “The improving economy and low gas prices have left American consumers with a lot of extra spending money, and the Consumer Discretionary sector has been hot as of late. After forming a broad base dating back to 2011, CarMax recently broke out above multi-year resistance in its chart versus the specialty retail segment.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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