What is Zacks Research’s Estimate for CarMax Q1 Earnings?

CarMax, Inc. (NYSE:KMX) – Investment analysts at Zacks Research boosted their Q1 2027 earnings estimates for CarMax in a report issued on Tuesday, January 6th. Zacks Research analyst Team now expects that the company will post earnings of $1.34 per share for the quarter, up from their previous forecast of $1.32. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q3 2027 earnings at $0.67 EPS, Q4 2027 earnings at $0.11 EPS, FY2027 earnings at $2.98 EPS, Q2 2028 earnings at $0.92 EPS and FY2028 earnings at $3.15 EPS.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.32 by $0.11. The firm had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The business’s quarterly revenue was down 6.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.81 EPS.

KMX has been the subject of a number of other research reports. Seaport Res Ptn downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a research report on Sunday, September 28th. BNP Paribas Exane decreased their price objective on shares of CarMax from $52.00 to $35.00 and set an “underperform” rating for the company in a research report on Friday, September 26th. Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a research note on Tuesday, October 14th. Oppenheimer restated a “market perform” rating on shares of CarMax in a report on Friday, September 26th. Finally, JPMorgan Chase & Co. decreased their price target on CarMax from $30.00 to $28.00 and set an “underweight” rating for the company in a report on Friday, December 19th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and six have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $39.36.

CarMax Price Performance

Shares of KMX opened at $45.25 on Friday. The business has a 50-day moving average of $38.27 and a 200-day moving average of $50.12. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The company has a market capitalization of $6.42 billion, a price-to-earnings ratio of 14.93, a price-to-earnings-growth ratio of 1.07 and a beta of 1.29. CarMax has a 1 year low of $30.26 and a 1 year high of $89.47.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. CYBER HORNET ETFs LLC bought a new stake in CarMax in the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc acquired a new stake in CarMax in the second quarter valued at approximately $30,000. Center for Financial Planning Inc. bought a new stake in shares of CarMax during the third quarter valued at approximately $31,000. Advisory Services Network LLC bought a new stake in shares of CarMax during the third quarter valued at approximately $32,000. Finally, True Wealth Design LLC increased its holdings in shares of CarMax by 54.3% during the fourth quarter. True Wealth Design LLC now owns 907 shares of the company’s stock valued at $35,000 after acquiring an additional 319 shares in the last quarter.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks raised FY2027 and FY2028 EPS forecasts (FY2027: $2.98 from $2.92; FY2028: $3.15 from $3.14), signaling slightly improved medium‑term profit expectations. Zacks raises FY estimates
• Positive Sentiment: Zacks also nudged up several quarterly estimates for 2027/2028 (Q1 2027 to $1.34 from $1.32; Q3 2027 to $0.67 from $0.62; Q4 2027 to $0.11 from $0.10; Q2 2028 to $0.92 from $0.91), which helps the narrative of modest earnings recovery. Zacks raises quarterly estimates
• Neutral Sentiment: Zacks kept a “Hold” rating on KMX and the broader consensus full‑year EPS remains near $3.23 — the revisions are incremental rather than a major re‑rating. Zacks hold rating
• Negative Sentiment: Offsetting some upside, Zacks trimmed a couple of near‑term estimates (Q1 2028 lowered to $1.31 from $1.33; Q2 2027 cut to $0.86 from $0.89), highlighting lingering near‑term demand/seasonality uncertainty. Zacks cuts near-term estimates

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.