Wedbush Has Positive Forecast for CarMax Q3 Earnings

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush upped their Q3 2025 earnings per share estimates for CarMax in a report released on Tuesday, December 17th. Wedbush analyst S. Basham now forecasts that the company will post earnings of $0.57 per share for the quarter, up from their previous estimate of $0.51. Wedbush currently has a “Outperform” rating and a $95.00 target price on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.01 per share. Wedbush also issued estimates for CarMax’s FY2025 earnings at $2.95 EPS, Q1 2026 earnings at $1.30 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.71 EPS, Q4 2026 earnings at $0.60 EPS and FY2026 earnings at $3.62 EPS.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The company had revenue of $6.22 billion during the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The business’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.52 earnings per share.

Several other equities research analysts also recently issued reports on KMX. Stephens started coverage on CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price target for the company. BNP Paribas raised CarMax to a “strong sell” rating in a research report on Friday, September 27th. JPMorgan Chase & Co. increased their price target on shares of CarMax from $65.00 to $70.00 and gave the company an “underweight” rating in a research note on Thursday, December 5th. Evercore ISI increased their price target on CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday. Finally, Oppenheimer reiterated an “outperform” rating and issued a $105.00 price target on shares of CarMax in a research report on Friday, October 4th. Four analysts have rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $82.58.

CarMax Stock Performance

Shares of CarMax stock opened at $84.23 on Friday. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. CarMax has a fifty-two week low of $65.83 and a fifty-two week high of $91.25. The firm has a 50 day simple moving average of $78.77 and a 200 day simple moving average of $77.55. The firm has a market cap of $13.05 billion, a P/E ratio of 31.67, a P/E/G ratio of 1.76 and a beta of 1.71.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Oddo BHF Asset Management Sas bought a new position in shares of CarMax in the 3rd quarter valued at about $2,229,000. Franklin Resources Inc. boosted its position in CarMax by 53.3% in the 3rd quarter. Franklin Resources Inc. now owns 27,362 shares of the company’s stock valued at $1,999,000 after buying an additional 9,509 shares during the period. Tidal Investments LLC grew its stake in CarMax by 141.8% in the third quarter. Tidal Investments LLC now owns 13,019 shares of the company’s stock worth $1,007,000 after purchasing an additional 7,635 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new stake in shares of CarMax in the third quarter valued at about $351,000. Finally, World Investment Advisors LLC bought a new stake in shares of CarMax in the 3rd quarter valued at about $6,942,000.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.