CarMax (NYSE:KMX) Issues Earnings Results, Misses Expectations By $0.01 EPS

CarMax (NYSE:KMX) posted its quarterly earnings results on Thursday. The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.01), Briefing.com reports. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The firm had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.83 billion. During the same period last year, the company posted $0.75 earnings per share. The firm’s quarterly revenue was down .9% compared to the same quarter last year.

CarMax Price Performance

KMX opened at $77.29 on Friday. The firm has a 50-day moving average price of $79.71 and a 200-day moving average price of $76.37. CarMax has a twelve month low of $59.66 and a twelve month high of $88.22. The company has a quick ratio of 0.60, a current ratio of 2.50 and a debt-to-equity ratio of 2.95. The company has a market capitalization of $12.06 billion, a price-to-earnings ratio of 30.19, a PEG ratio of 1.56 and a beta of 1.69.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on KMX. Royal Bank of Canada upped their price objective on shares of CarMax from $75.00 to $82.00 and gave the stock an “outperform” rating in a report on Friday. Mizuho decreased their price target on CarMax from $75.00 to $72.00 and set a “neutral” rating for the company in a report on Tuesday, June 18th. Truist Financial raised their price objective on CarMax from $70.00 to $75.00 and gave the company a “hold” rating in a research note on Monday, September 23rd. Needham & Company LLC upped their price objective on shares of CarMax from $87.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Evercore ISI upped their target price on CarMax from $76.00 to $79.00 and gave the company an “in-line” rating in a report on Friday. Three investment analysts have rated the stock with a sell rating, five have assigned a hold rating and six have given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $78.92.

Insider Activity at CarMax

In other CarMax news, COO Charles Joseph Wilson sold 10,021 shares of the business’s stock in a transaction on Tuesday, July 23rd. The shares were sold at an average price of $80.02, for a total transaction of $801,880.42. Following the sale, the chief operating officer now owns 15,609 shares of the company’s stock, valued at approximately $1,249,032.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, COO Charles Joseph Wilson sold 10,021 shares of the company’s stock in a transaction dated Tuesday, July 23rd. The stock was sold at an average price of $80.02, for a total transaction of $801,880.42. Following the sale, the chief operating officer now directly owns 15,609 shares in the company, valued at $1,249,032.18. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Mohammad Shamim sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $82.26, for a total transaction of $2,056,500.00. Following the transaction, the executive vice president now directly owns 11,738 shares of the company’s stock, valued at approximately $965,567.88. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 184,012 shares of company stock worth $14,803,843. 1.66% of the stock is owned by corporate insiders.

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.