Used automotive vehicle retailer Carmax (NYSE:KMX) will be reporting results tomorrow before market hours. Here's what to expect.
Last quarter CarMax reported revenues of $8.09 billion, down 16.3% year on year, beating analyst revenue expectations by 7.61%. It was a strong quarter for the company, with revenue and EPS exceeding analysts' estimates. However, the correction in the used car market caused same-store sales to drag, leading to declining revenue.
Is CarMax buy or sell heading into the earnings? Read our full analysis here.
This quarter, analysts are expecting CarMax's revenue to decline 17.3% year on year to $7.03 billion, a deceleration on the 2.28% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.
Looking at CarMax's peers in the automotive and marine retail segment, only AutoZone has so far reported results, delivering top-line growth of 6.4% year on year, and beating analyst estimates by 1.46%. The stock traded down 2.97% on the results.Read our full analysis of AutoZone's earnings results here.
Tech stocks have been under pressure since the end of last year and while some of the automotive and marine retail stocks have fared somewhat better, they have not been spared, with share price declining 9.73% over the last month. CarMax is down 4.62% during the same time, and is heading into the earnings with with analyst price target of $83.7, compared to share price of $77.7.
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The author has no position in any of the stocks mentioned.