CarMax, Inc. KMX is slated to release fourth-quarter fiscal 2025 results on April 10, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 64 cents per share and $5.97 billion, respectively.

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For the fiscal fourth quarter, the consensus estimate for KMX’s earnings per share has moved up by 2 cents in the past 60 days. Its bottom-line estimates imply a rise of 100% from the year-ago reported number.

The Zacks Consensus Estimate for revenues suggests year-over-year growth of 6.14%.

KMX surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, the average negative surprise being 0.36%. This is depicted in the graph below:

CarMax, Inc. Price and EPS Surprise

CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote

Q3 Highlights

In third-quarter fiscal 2025, CarMax posted adjusted quarterly earnings of 81 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents and rose from 52 cents reported a year ago. The auto retailer posted revenues of $6.22 billion, which surpassed the Zacks Consensus Estimate of $5.99 billion and rose 1.2% from the year-ago quarter.

Things to Note

CarMax is the leading used car retailer in the United States. The company’s extensive nationwide footprint and logistics network provide CarMax with a competitive advantage. In fiscal 2025, KMX planned to open five new stores, including smaller cross-functional ones. The company is riding high on strategic buyouts and collaborations. The acquisition of Edmunds has bolstered its position in the used auto market, enhancing digital capabilities and technology expertise. The opening of new stores and strategic buyouts are likely to have fueled the company’s top-line growth in the fiscal fourth quarter. 

Here's a sneak peek at the firm’s key revenue projections for the to-be-reported quarter.

Our estimate for quarterly revenues from used vehicle sales, which has the highest contribution to the company’s revenues, is pegged at $4.58 billion, suggesting year-over-year growth of 1.8%. Our estimate for revenues from wholesale vehicle sales is pegged at $892 million, indicating year-over-year growth of 0.9%. Our estimate for other revenues is pegged at $168.5 billion, indicating year-over-year growth of 8.9%. 

Earnings Whispers

Our proven model predicts an earnings beat for CarMax this time around, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.

Earnings ESP: KMX has an Earnings ESP of +2.44%. This is because the Most Accurate Estimate is pegged above the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CarMax currently carries a Zacks Rank #3.

Earnings Whispers for Other Auto Stocks

Lucid Group, Inc. LCID has an Earnings ESP of -2.99% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to post first-quarter 2025 earnings on May 6. The Zacks Consensus Estimate is pegged at a loss of 22 cents per share.

LCID surpassed estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 10.04%.

Rivian Automotive, Inc. RIVN has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. The company is slated to post first-quarter 2025 earnings on May 6. The Zacks Consensus Estimate is pegged at a loss of 80 cents per share.

RIVN surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 2.71%.

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CarMax, Inc. (KMX) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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