CarMax Set to Announce Q1 Earnings on June 17
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Earnings Announcement Date: CarMax (KMX) is scheduled to release its Q1 earnings on June 17 after market close, with a consensus EPS estimate of $0.98, reflecting a significant 29% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $7.43 billion, down 1.6% year-over-year, which suggests a weakening overall market demand that could impact the company's sales strategies and inventory management.
- Historical Performance Review: Over the past two years, CarMax has beaten EPS estimates 63% of the time and revenue estimates 88% of the time, demonstrating some resilience amid market fluctuations, although recent estimate revisions may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced six upward revisions and one downward, indicating a divergence in analysts' outlook on the company's future performance.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 52.210
Low
24.00
Averages
33.60
High
37.00
Current: 52.210
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CarMax Set to Announce Q1 Earnings on June 17
- Earnings Announcement Date: CarMax (KMX) is scheduled to release its Q1 earnings on June 17 after market close, with a consensus EPS estimate of $0.98, reflecting a significant 29% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $7.43 billion, down 1.6% year-over-year, which suggests a weakening overall market demand that could impact the company's sales strategies and inventory management.
- Historical Performance Review: Over the past two years, CarMax has beaten EPS estimates 63% of the time and revenue estimates 88% of the time, demonstrating some resilience amid market fluctuations, although recent estimate revisions may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced six upward revisions and one downward, indicating a divergence in analysts' outlook on the company's future performance.
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- Market Reaction: Investors will closely monitor these earnings to assess the companies' operational status in the current economic environment, which could influence stock price movements and investment decisions.
- Industry Impact: As a leader in electronic manufacturing services, Jabil's earnings will impact confidence across the manufacturing sector; CarMax's results will reflect the health of the automotive market, while Progressive's report may influence sentiment in the insurance industry.
- Earnings Season: As the earnings season progresses, market expectations for major companies are heating up, prompting analysts and investors to adjust their strategies based on these data points.
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CarMax Q1 Earnings Report Preview
- Earnings Release Date: CarMax is set to report its Q1 earnings on June 17, with market participants keenly awaiting its performance and future outlook.
- Earnings Expectations: Analysts forecast an EPS of 94 cents for Q1, indicating a cautiously optimistic view on the company's profitability amidst market challenges.
- Revenue Forecast: The expected revenue of $7.42 billion for Q1 represents a slight decline from last year's $7.55 billion, reflecting increased market competition and shifts in consumer demand.
- Historical Comparison: Last year's revenue of $7.55 billion highlights the pressure CarMax faces in achieving revenue growth, which could impact investor confidence moving forward.
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CarMax Set to Announce Q1 Earnings on June 17
- Earnings Announcement Date: CarMax (KMX) is scheduled to release its Q1 earnings on June 17 after market close, with a consensus EPS estimate of $0.98, reflecting a significant 29% year-over-year decline, indicating potential profitability challenges.
- Revenue Expectations Decline: The anticipated revenue for Q1 is $7.43 billion, down 1.6% year-over-year, which suggests a weakening overall market demand that could impact the company's sales strategies and inventory management.
- Historical Performance Review: Over the past two years, CarMax has beaten EPS estimates 63% of the time and revenue estimates 88% of the time, demonstrating some resilience amid market fluctuations, although recent estimate revisions may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced six upward revisions and one downward, indicating a divergence in analysts' outlook on the company's future performance.
See More
Major Earnings Reports Expected Wednesday
- Earnings Reports: Major earnings reports from Jabil (JBL), CarMax (KMX), and Progressive Corporation (PGR) are expected before the market opens on Wednesday, with significant attention on their performance and future guidance.
- Market Reaction: Investors will closely monitor these earnings to assess the companies' operational status in the current economic environment, which could influence stock price movements and investment decisions.
- Industry Impact: As a leader in electronic manufacturing services, Jabil's earnings will impact confidence across the manufacturing sector; CarMax's results will reflect the health of the automotive market, while Progressive's report may influence sentiment in the insurance industry.
- Earnings Season: As the earnings season progresses, market expectations for major companies are heating up, prompting analysts and investors to adjust their strategies based on these data points.
See More
Mixed Market on Tuesday as Tech Stocks Retreat After Strong Rally
- Tech Stock Retreat: On Tuesday, the Nasdaq index pulled back after a 3% rally on Monday, indicating a reassessment by investors that may lead to a reallocation of funds, impacting overall market sentiment.
- Oil Price Decline: U.S. WTI crude oil prices fell below $76 per barrel, marking the lowest level since the early days of the Middle East conflict, a trend that may support the Fed's decision to keep interest rates unchanged, affecting economically sensitive stocks.
- Eli Lilly Acquisition: Eli Lilly announced the acquisition of 4E Therapeutics, with the deal amount undisclosed, but the company is developing oral medications for chronic pain, highlighting Lilly's strategic focus on addressing unmet medical needs.
- Broadcom Insider Trading: Broadcom's chairman Harry You purchased 1,000 shares at $373.57 last Thursday, and while the transaction amount is not significant enough to impact the market, it reflects management's confidence in the stock's future performance.
See More
SpaceX Achieves Largest IPO in History with 19% Share Surge
- Historic IPO: SpaceX successfully went public last Friday, achieving the largest initial public offering in history with a 19% share price increase during trading, closing at $161, and the company's valuation exceeding $2 trillion, underscoring its leadership in the aerospace sector.
- Continued Price Surge: On the following Monday, SpaceX's stock rose another 8%, reflecting strong market confidence in its future growth potential and further solidifying its perceived value among investors.
- Key Price Levels: Market strategist Jay Woods highlighted that the current anchored volume-weighted average price is at $167.50, and if the stock can maintain an average closing price above $175.50 for 5 to 10 days, insiders will have the opportunity to sell up to 10% of their shares, which could significantly impact market liquidity.
- Market Focus: Woods also noted that as peace talks progress, traders will be watching the S&P 500's 7620 level for confirmation that the worst may be behind us, which could have profound implications for overall market sentiment.
See More
CarMax Q1 Earnings Report Preview
- Earnings Release Date: CarMax is set to report its Q1 earnings on June 17, with market participants keenly awaiting its performance and future outlook.
- Earnings Expectations: Analysts forecast an EPS of 94 cents for Q1, indicating a cautiously optimistic view on the company's profitability amidst market challenges.
- Revenue Forecast: The expected revenue of $7.42 billion for Q1 represents a slight decline from last year's $7.55 billion, reflecting increased market competition and shifts in consumer demand.
- Historical Comparison: Last year's revenue of $7.55 billion highlights the pressure CarMax faces in achieving revenue growth, which could impact investor confidence moving forward.
See More
New York Knicks Win Championship, Markets Rally
- Knicks Championship: The New York Knicks won the NBA championship for the first time in over fifty years, a historic achievement that not only enhances the team's brand value but also stimulates local economic recovery.
- Oil Price Drop: The U.S. and Iran reached an agreement to reopen the Strait of Hormuz on Friday, causing oil prices to dip below $80 for the first time, which is expected to alleviate global energy market tensions and impact operational costs for related businesses.
- SpaceX IPO Performance: SpaceX shares surged over 19% in its IPO, with a market cap exceeding $2 trillion and over 500 million shares traded on the first day, reflecting strong market confidence in its future growth prospects.
- JetBlue Expansion Plans: JetBlue holds a 36% market share in Florida and plans to expand its international routes and premium offerings following Spirit Airlines' collapse, which is expected to enhance its competitive position and attract more customers.
See More
