In its upcoming report, CarMax (KMX) is predicted by Wall Street analysts to post quarterly earnings of $1.22 per share, reflecting an increase of 25.8% compared to the same period last year. Revenues are forecasted to be $7.56 billion, representing a year-over-year increase of 6.3%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link 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.
That said, let's delve into the average estimates of some CarMax metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Net sales- Wholesale vehicles' reaching $1.31 billion. The estimate indicates a change of +4.7% from the prior-year quarter.
The average prediction of analysts places 'Net sales- Other' at $189.91 million. The estimate indicates a year-over-year change of +5.8%.
According to the collective judgment of analysts, 'Net sales- Used vehicles' should come in at $6.05 billion. The estimate suggests a change of +6.6% year over year.
The consensus estimate for 'Other sales and revenues- Extended protection plan revenues' stands at $129.56 million. The estimate points to a change of +9.1% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Number of stores - Total' of 251. Compared to the current estimate, the company reported 245 in the same quarter of the previous year.
The consensus among analysts is that 'Revenue per vehicle retailed (ASP) - Used vehicles' will reach $26.84 thousand. Compared to the present estimate, the company reported $26.53 thousand in the same quarter last year.
Analysts expect 'Gross Profit per Unit - Used vehicles gross profit' to come in at $2,384.83. Compared to the present estimate, the company reported $2,347 in the same quarter last year.
Analysts forecast 'Gross Profit per Unit - Wholesale vehicles gross profit' to reach $1,070.91. Compared to the present estimate, the company reported $1,064 in the same quarter last year.
Analysts predict that the 'Unit sales - Wholesale vehicles' will reach 153,829. Compared to the present estimate, the company reported 147,685 in the same quarter last year.
The combined assessment of analysts suggests that 'Unit sales - Total vehicles' will likely reach 378,575. The estimate is in contrast to the year-ago figure of 358,817.
Based on the collective assessment of analysts, 'Unit sales - Used vehicles' should arrive at 224,745. The estimate is in contrast to the year-ago figure of 211,132.
It is projected by analysts that the 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' will reach $8.29 thousand. Compared to the present estimate, the company reported $8.09 thousand in the same quarter last year.
View all Key Company Metrics for CarMax here>>>
CarMax shares have witnessed a change of -3.5% in the past month, in contrast to the Zacks S&P 500 composite's +1.7% move. With a Zacks Rank #3 (Hold), KMX is expected closely follow the overall market performance in the near term. 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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