CarMax Q2 EPS Expected at 70 Cents, Revenue $6.94B
CarMax is set to report Q2 results on Sept 29, with analysts projecting a 9% EPS increase to 70 cents and revenue growth to $6.94 billion.
Key points
- CarMax expects 70 cents per share in Q2 earnings, up 9% from 64 cents in the year-ago period.
- Quarterly revenue is projected at $6.94 billion, a 5% increase over the $6.59 billion reported last year.
- JP Morgan raised its CarMax price target to $70, while Stephens & Co. boosted its target to $66.
CarMax, Inc. (NYSE: KMX) prepares to release its second-quarter financial results before the market opens on Tuesday, September 29. The Richmond, Virginia-based used car retailer faces a consensus estimate of 70 cents per share for quarterly earnings, marking a 9% increase from the 64 cents per share reported in the same period last year. This projected growth in profitability comes as the company looks to maintain its trajectory following a better-than-expected first-quarter report issued in mid-June.
Revenue expectations have also been revised upward, with analysts projecting total quarterly sales of $6.94 billion. This figure represents a 5% year-over-year increase from the $6.59 billion recorded during the prior year’s second quarter. According to data tracked by Benzinga Pro, these figures reflect a steady expansion in the company’s top line, consistent with its operational scale in the automotive sector.
Analyst Price Targets Rise Sharply
Recent adjustments by Wall Street forecasters indicate a significant shift in valuation expectations for the stock. JP Morgan analyst Rajat Gupta raised the price target from $60 to $70 on September 18 while maintaining a Neutral rating. Similarly, Stephens & Co. analyst Jeff Lick boosted the target from $43 to $66 on June 18, keeping an Equal-Weight stance. These moves suggest that institutional investors are re-evaluating the company's long-term earnings potential based on recent performance data.
Other major firms have also adjusted their outlooks, though with more modest changes. Truist Securities analyst Scot Ciccarelli increased the target from $47 to $50 on June 18, maintaining a Hold rating. Evercore ISI Group analyst Michael Montani raised the target from $45 to $58 on the same date while keeping an In-Line rating. RBC Capital analyst Steven Shemesh moved the target from $41 to $45 on June 18, sustaining a Sector Perform view. These adjustments collectively point to a broader consensus that CarMax's fundamentals have strengthened since early in the year.
Stock Remains Under Pressure
Despite the upward revisions in analyst estimates, CarMax shares have not yet fully reflected these changes in the market. The stock closed at $57.21 on Friday, representing a 2% decline from the previous trading session. This price action occurs ahead of the September 29 earnings release, leaving investors to weigh the expected 9% EPS growth against current valuation levels. The gap between the current share price and the highest new target of $70 highlights the potential for further movement if the company meets or exceeds the 70-cent earnings estimate.
