Used automotive vehicle retailer Carmax (NYSE:KMX) will be reporting results tomorrow before market hours. Here's what you need to know.
Last quarter CarMax (NYSE:KMX) reported revenues of $6.15 billion, down 5.5% year on year, missing analyst expectations by 2.5%. It was a mixed quarter for the company, with EPS exceeding expectations due to a more efficient expense base that resulted from cost reduction efforts. However, its revenue unfortunately missed analysts' expectations.
Is CarMax buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting CarMax's revenue to grow 1.6% year on year to $5.81 billion, improving on the 25.6% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.
Looking at CarMax's peers in the automotive and marine retail segment, only AutoZone (NYSE:AZO) has so far reported results, delivering top-line growth of 4.6% year on year, and beating analyst estimates by 0.3%. The stock traded up 2.3% on the results.
Read the full analysis of AutoZone's results on StockStory. Technology stocks have been hit hard on fears of higher interest rates and while some of the automotive and marine retail stocks have fared somewhat better, they have not been spared, with share price declining 2.6% over the last month. CarMax is up 2.2% during the same time, and is heading into the earnings with analyst price target of $84.9, compared to share price of $83.8.