CarMax Surprises with Quarterly Earnings, Stock Rebounds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Earnings Surprise: CarMax reported over $8 billion in net revenue for Q1 FY2027, marking a 6% year-over-year increase, although GAAP net income fell by 12% to $186 million, yet still exceeded analyst expectations, demonstrating resilience in a high gas price environment.
- Analyst Optimism: Following the earnings release, while the stock initially dipped, analysts raised their price targets for CarMax, with Jeff Lick of Stephens increasing his target from $43 to $66 and upgrading his rating from equal-weight to overweight, reflecting confidence in the company's future.
- Insider Buying Boosts Confidence: CEO Keith Barr purchased 9,400 shares on June 22, and four board members collectively bought 14,674 shares, which bolstered market confidence in the company's prospects amid the stock's volatility.
- Market Challenges and Opportunities: Despite facing high gas prices and potential interest rate hikes, CarMax's sales growth and the implementation of its new 'four pillar' strategy indicate its adaptability in the competitive auto retail market, suggesting potential for sustained growth ahead.
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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: 50.300
Low
24.00
Averages
33.60
High
37.00
Current: 50.300
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 Surprises with Quarterly Earnings, Stock Rebounds
- Earnings Surprise: CarMax reported over $8 billion in net revenue for Q1 FY2027, marking a 6% year-over-year increase, although GAAP net income fell by 12% to $186 million, yet still exceeded analyst expectations, demonstrating resilience in a high gas price environment.
- Analyst Optimism: Following the earnings release, while the stock initially dipped, analysts raised their price targets for CarMax, with Jeff Lick of Stephens increasing his target from $43 to $66 and upgrading his rating from equal-weight to overweight, reflecting confidence in the company's future.
- Insider Buying Boosts Confidence: CEO Keith Barr purchased 9,400 shares on June 22, and four board members collectively bought 14,674 shares, which bolstered market confidence in the company's prospects amid the stock's volatility.
- Market Challenges and Opportunities: Despite facing high gas prices and potential interest rate hikes, CarMax's sales growth and the implementation of its new 'four pillar' strategy indicate its adaptability in the competitive auto retail market, suggesting potential for sustained growth ahead.
See More
Investigation into CarMax Directors' Fiduciary Duties
- Shareholder Rights Investigation: Bernstein Liebhard LLP is investigating whether certain directors and officers of CarMax, Inc. breached their fiduciary duties, specifically targeting shareholders who purchased shares prior to June 20, 2025.
- Legal Consultation Opportunity: Shareholders holding CarMax stock can discuss their legal rights and options by contacting Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
- Law Firm Background: Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for clients, representing individual investors and large public and private pension funds, showcasing its strong capabilities in investor rights protection.
- Industry Recognition: The firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and has been listed in The Legal 500 for sixteen consecutive years, highlighting its significant influence in the legal field.
See More
Levi Strauss Stock Fluctuations and Market Dynamics
- Levi Strauss Stock Performance: Levi Strauss shares have risen 25% over the past three months but are down 3.6% from the July 1 high, indicating increased market volatility as investors await the upcoming earnings report.
- SK Hynix Listing Update: SK Hynix is set to list in the U.S. on Friday, holding a 25% weighting in the iShares MSCI South Korea ETF, which has dropped 18% since June 18 yet is up nearly 160% year-to-date, reflecting strong market interest in the semiconductor sector.
- Used Car Market Trends: CarMax shares are down 27% from last July's high, despite an 8% increase over the past month, while Carvana has fallen 30% since January, indicating ongoing pressure in the used car market.
- Costco Sales Data Preview: Costco is scheduled to release monthly sales data on Wednesday, with shares down 2.5% in the past month and 13% from the May high, prompting investors to monitor sales performance for future earnings assessments.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering, community investment, and social impact strategy, reflecting the company's strong commitment to corporate social responsibility.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in one or more community initiatives, showcasing the employees' passion and commitment to their communities, thereby strengthening the company's community ties.
- Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at auctions, while CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Culture and Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, demonstrating its success in employee experience and corporate social responsibility, indicating a positive cycle between driving social impact and achieving business success.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering and community investment, which underscores the company's commitment to social impact.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in at least one community initiative, reflecting the company's culture of valuing community involvement and employee engagement.
- Automotive Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles, while originating $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Social Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, showcasing its success in employee experience and community relations, emphasizing the company's role as a positive force in society.
See More
CarMax Stock Surges 13% After Analyst Upgrades
- Stock Rebound: CarMax's stock surged 13% on Thursday after a 9% drop the previous day, indicating a positive market reaction to its earnings report despite initial negative sentiment.
- Analyst Rating Upgrades: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting analysts' confidence in the company's future performance.
- Key Analyst Adjustment: Stephens analyst Jeff Lick upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, acknowledging its strong market position despite competitive pressures.
- Strong Performance: CarMax reported a 6% year-over-year revenue growth in its first quarter, and if it can sustain this growth, its stock is expected to perform well in a challenging auto sales environment.
See More
CarMax Surprises with Quarterly Earnings, Stock Rebounds
- Earnings Surprise: CarMax reported over $8 billion in net revenue for Q1 FY2027, marking a 6% year-over-year increase, although GAAP net income fell by 12% to $186 million, yet still exceeded analyst expectations, demonstrating resilience in a high gas price environment.
- Analyst Optimism: Following the earnings release, while the stock initially dipped, analysts raised their price targets for CarMax, with Jeff Lick of Stephens increasing his target from $43 to $66 and upgrading his rating from equal-weight to overweight, reflecting confidence in the company's future.
- Insider Buying Boosts Confidence: CEO Keith Barr purchased 9,400 shares on June 22, and four board members collectively bought 14,674 shares, which bolstered market confidence in the company's prospects amid the stock's volatility.
- Market Challenges and Opportunities: Despite facing high gas prices and potential interest rate hikes, CarMax's sales growth and the implementation of its new 'four pillar' strategy indicate its adaptability in the competitive auto retail market, suggesting potential for sustained growth ahead.
See More
Investigation into CarMax Directors' Fiduciary Duties
- Shareholder Rights Investigation: Bernstein Liebhard LLP is investigating whether certain directors and officers of CarMax, Inc. breached their fiduciary duties, specifically targeting shareholders who purchased shares prior to June 20, 2025.
- Legal Consultation Opportunity: Shareholders holding CarMax stock can discuss their legal rights and options by contacting Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
- Law Firm Background: Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for clients, representing individual investors and large public and private pension funds, showcasing its strong capabilities in investor rights protection.
- Industry Recognition: The firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and has been listed in The Legal 500 for sixteen consecutive years, highlighting its significant influence in the legal field.
See More
Levi Strauss Stock Fluctuations and Market Dynamics
- Levi Strauss Stock Performance: Levi Strauss shares have risen 25% over the past three months but are down 3.6% from the July 1 high, indicating increased market volatility as investors await the upcoming earnings report.
- SK Hynix Listing Update: SK Hynix is set to list in the U.S. on Friday, holding a 25% weighting in the iShares MSCI South Korea ETF, which has dropped 18% since June 18 yet is up nearly 160% year-to-date, reflecting strong market interest in the semiconductor sector.
- Used Car Market Trends: CarMax shares are down 27% from last July's high, despite an 8% increase over the past month, while Carvana has fallen 30% since January, indicating ongoing pressure in the used car market.
- Costco Sales Data Preview: Costco is scheduled to release monthly sales data on Wednesday, with shares down 2.5% in the past month and 13% from the May high, prompting investors to monitor sales performance for future earnings assessments.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering, community investment, and social impact strategy, reflecting the company's strong commitment to corporate social responsibility.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in one or more community initiatives, showcasing the employees' passion and commitment to their communities, thereby strengthening the company's community ties.
- Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at auctions, while CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Culture and Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, demonstrating its success in employee experience and corporate social responsibility, indicating a positive cycle between driving social impact and achieving business success.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering and community investment, which underscores the company's commitment to social impact.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in at least one community initiative, reflecting the company's culture of valuing community involvement and employee engagement.
- Automotive Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles, while originating $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Social Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, showcasing its success in employee experience and community relations, emphasizing the company's role as a positive force in society.
See More
CarMax Stock Surges 13% After Analyst Upgrades
- Stock Rebound: CarMax's stock surged 13% on Thursday after a 9% drop the previous day, indicating a positive market reaction to its earnings report despite initial negative sentiment.
- Analyst Rating Upgrades: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting analysts' confidence in the company's future performance.
- Key Analyst Adjustment: Stephens analyst Jeff Lick upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, acknowledging its strong market position despite competitive pressures.
- Strong Performance: CarMax reported a 6% year-over-year revenue growth in its first quarter, and if it can sustain this growth, its stock is expected to perform well in a challenging auto sales environment.
See More
