Wall Street analysts expect CarMax (KMX) to post quarterly earnings of $0.32 per share in its upcoming report, which indicates a year-over-year decline of 60.5%. Revenues are expected to be $5.79 billion, down 7% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain CarMax metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Net sales and operating revenues- Wholesale vehicle' will reach $1.05 billion. The estimate points to a change of -10.1% from the year-ago quarter.
According to the collective judgment of analysts, 'Net sales and operating revenues- Other sales and revenues' should come in at $159.33 million. The estimate points to a change of -4% from the year-ago quarter.
It is projected by analysts that the 'Net sales and operating revenues- Used vehicle' will reach $4.52 billion. The estimate points to a change of -7.6% from the year-ago quarter.
Analysts' assessment points toward 'Other sales and revenues- Extended protection plan revenues' reaching $101.08 million. The estimate indicates a year-over-year change of -4.2%.
The average prediction of analysts places 'Number of stores - Total' at 256 . The estimate is in contrast to the year-ago figure of 245 .
Analysts expect 'Gross Profit per Unit - Used vehicle' to come in at $2207.35 . Compared to the present estimate, the company reported $2306.00 in the same quarter last year.
The consensus estimate for 'Gross Profit per Unit - Wholesale vehicle' stands at $918.80 . Compared to the current estimate, the company reported $1015.00 in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Average Selling Prices - Wholesale vehicles' will likely reach $8.06 thousand. The estimate compares to the year-ago value of $8.18 thousand.
Analysts forecast 'Unit Sales - Wholesale vehicles' to reach 127,871 . The estimate compares to the year-ago value of 136,013 .
The collective assessment of analysts points to an estimated 'Unit Sales - Combined retail and wholesale used vehicle' of 303,157 . The estimate is in contrast to the year-ago figure of 320,256 .
The consensus among analysts is that 'Unit Sales - Used vehicles' will reach 175,286 . Compared to the current estimate, the company reported 184,243 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Average Selling Prices - Used vehicles' should arrive at $25.99 thousand. The estimate is in contrast to the year-ago figure of $26.15 thousand.
View all Key Company Metrics for CarMax here>>>
Over the past month, CarMax shares have recorded returns of +19.1% versus the Zacks S&P 500 composite's -0.2% change. Based on its Zacks Rank #5 (Strong Sell), KMX will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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CarMax, Inc. (KMX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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