CarMax Analysts Cut Their Forecasts After Downbeat Earnings
Portfolio Pulse from Avi Kapoor
CarMax Inc (NYSE:KMX) reported lower than expected fourth-quarter earnings, with a 1.7% year-on-year sales decline to $5.63 billion, missing analyst estimates. EPS was 32 cents, below the expected 49 cents. The company sold 287,603 units, a 0.9% decrease year-over-year, and opened four new stores. Despite the downturn, CEO Bill Nash highlighted growth in used unit sales and strong gross profit per unit. CarMax anticipates FY25 capital expenditures of $500 million to $550 million and aims to sell over 2 million units annually by FY2030. Following the earnings report, CarMax shares dropped 9.2%. Analysts from Baird, Mizuho, and Needham adjusted their price targets for KMX.
April 12, 2024 | 12:03 pm
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CarMax reported lower than expected Q4 earnings, with a sales decline and EPS below estimates, leading to a 9.2% drop in shares. Analysts adjusted price targets in response.
The reported earnings miss and subsequent share price drop indicate a negative short-term impact on CarMax's stock. Analyst adjustments to price targets further reflect the market's reaction to the earnings report, suggesting a bearish outlook in the short term.
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