Automotive dealer CarMax Inc KMX reports its fourth quarter (Q4) financial results on Thursday, April 11 before the market opens.
Here are the top earnings estimates, what analysts are saying, and the key things for investors to watch.
Earnings estimates: Analysts expect CarMax to report fourth-quarter revenue of $5.795 billion according to data from Benzinga Pro.
The estimate would represent an improvement over last year’s fourth-quarter total of $5.723 billion. The company reported a 5.5% year-over-year revenue decline in the third quarter. CarMax has beaten analysts’ revenue estimates in two of the last six quarters.
Analysts expect the company to report fourth-quarter earnings per share of 49 cents. This would be an improvement from 44 cents in the same period last year. The company has beaten analysts’ earnings per share estimates in three of the last four quarters.
What the analysts say: Early positive fourth-quarter numbers for CarMax recently led Needham analyst Chris Pierce to upgrade the stock from Hold to Buy.
Pierce, who has a $99 price target on CarMax, said the company’s recovery is growing and that easily comparable sales to last year’s fourth quarter could help the company.
CarMax could see market share growth in the fourth quarter along with a multi-year recovery path, analysts say.
Here are other recent analyst ratings and price targets for CarMax.
- Oppenheimer: Outperform rating, $105 price target
- RBC Capital: Outperform rating, $83 price target
- Wedbush: Outperform rating, raise price target from $90 to $100
- Evercore ISI Group: In-Line Rating, Raise Price Target from $78 to $85
- Mizuho: Neutral rating, $80 price target
Related Link: ‘Mild Recession’ Will Hit Homebuilders, Auto Stocks in Second Half of 2024, Analyst Says
Key elements to keep an eye on: CarMax’s fourth-quarter report and commentary could provide an overall look at how the used-car industry is performing.
Investors and analysts will also be watching to see how the company’s investments and e-commerce efforts are shaping up.
The company’s store openings in the fourth quarter included New York City, Chicago and Los Angeles. Early data from these markets and other predicted regions could be a key thing to watch.
Cost reduction has been a key focus of the company, and the fourth quarter may continue to highlight this commitment from the company.
Share buybacks resumed at the company in the third quarter, and investors will be looking to see if the company bought more shares in the fourth quarter.
Another key will be guidance for the next fiscal year.
KMX Price ActionCarMax shares fell 4% to $80.02 on Wednesday from a 52-week trading range of $59.66 to $88.22. Shares of the auto retailer have risen 21% over the past year.
Read next: How much is a cybertruck worth to the CarMax used car buyer? YouTuber shares surprising results