Unveiling CarMax (KMX) Q3 Outlook: Wall Street Estimates for Key Metrics
Analysts on Wall Street project that CarMax (KMX) will announce quarterly earnings of $0.45 per share in its forthcoming report, representing an increase of 87.5% year over year. Revenues are projected to reach $6.34 billion, declining 2.6% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 5.9% 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 reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific CarMax metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Net sales- Wholesale vehicles' stands at $1.16 billion. The estimate indicates a change of +1% from the prior-year quarter.
The average prediction of analysts places 'Net sales- Used vehicles' at $5.02 billion. The estimate indicates a change of -3.5% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net sales- Other' should arrive at $153.60 million. The estimate points to a change of +3% from the year-ago quarter.
According to the collective judgment of analysts, 'Other sales and revenues- Extended protection plan revenues' should come in at $89.95 million. The estimate indicates a change of -2% from the prior-year quarter.
Analysts forecast 'Number of stores - Total' to reach 243. The estimate compares to the year-ago value of 230.
Analysts' assessment points toward 'Gross Profit per Unit - Used vehicles gross profit' reaching $2,231.18. Compared to the current estimate, the company reported $2,237 in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Gross Profit per Unit - Wholesale vehicles gross profit' will likely reach $952.74. The estimate compares to the year-ago value of $966.
It is projected by analysts that the 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' will reach $8.71 thousand. Compared to the present estimate, the company reported $9.29 thousand in the same quarter last year.
The collective assessment of analysts points to an estimated 'Unit sales - Wholesale vehicles' of 127,598. Compared to the present estimate, the company reported 118,757 in the same quarter last year.
The consensus among analysts is that 'Unit sales - Used vehicles' will reach 182,723. The estimate is in contrast to the year-ago figure of 180,050.
Analysts expect 'Revenue per vehicle retailed (ASP) - Used vehicles' to come in at $26.92 thousand. Compared to the present estimate, the company reported $28.53 thousand in the same quarter last year.
Analysts predict that the 'Gross Profit per Unit - Other gross profit' will reach $501.84. Compared to the present estimate, the company reported $329 in the same quarter last year.
View all Key Company Metrics for CarMax here>>>
Over the past month, shares of CarMax have returned +16.8% versus the Zacks S&P 500 composite's +5.2% change. Currently, KMX carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. 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 Report
