The upcoming report from CarMax (KMX) is expected to reveal quarterly earnings of $0.21 per share, indicating a decline of 67.2% compared to the year-ago period. Analysts forecast revenues of $5.76 billion, representing a decline of 4% year over year.
Over the last 30 days, there has been a downward revision of 1.3% 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.
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 investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some CarMax metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Net sales and operating revenues- Wholesale vehicle' of $946.52 million. The estimate suggests a change of -6.1% year over year.
Analysts' assessment points toward 'Net sales and operating revenues- Other sales and revenues' reaching $154.76 million. The estimate indicates a year-over-year change of -2.7%.
The consensus among analysts is that 'Net sales and operating revenues- Used vehicle' will reach $4.62 billion. The estimate points to a change of -4.5% from the year-ago quarter.
The average prediction of analysts places 'Other sales and revenues- Extended protection plan revenues' at $101.05 million. The estimate indicates a year-over-year change of -4.6%.
Based on the collective assessment of analysts, 'Gross Profit per Unit - Used vehicle' should arrive at $1933.76 . The estimate is in contrast to the year-ago figure of $2322.00 .
According to the collective judgment of analysts, 'Gross Profit per Unit - Wholesale vehicle' should come in at $927.49 . Compared to the present estimate, the company reported $1045.00 in the same quarter last year.
It is projected by analysts that the 'Unit Sales - Used vehicles' will reach 179,115 . Compared to the present estimate, the company reported 182,655 in the same quarter last year.
Analysts expect 'Unit Sales - Combined retail and wholesale used vehicle' to come in at 296,704 . Compared to the current estimate, the company reported 301,811 in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Number of stores - Total' will likely reach 256 . The estimate is in contrast to the year-ago figure of 250 .
Analysts predict that the 'Average Selling Prices - Used vehicles' will reach $25.89 thousand. Compared to the present estimate, the company reported $26.13 thousand in the same quarter last year.
Analysts forecast 'Average Selling Prices - Wholesale vehicles' to reach $7.90 thousand. The estimate is in contrast to the year-ago figure of $8.04 thousand.
The consensus estimate for 'Unit Sales - Wholesale vehicles' stands at 117,589 . The estimate compares to the year-ago value of 119,156 .
View all Key Company Metrics for CarMax here>>>Over the past month, shares of CarMax have returned +4.1% versus the Zacks S&P 500 composite's +0.8% change. Currently, KMX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with 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
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