CarMax Gears Up to Report Q4 Earnings: Here's What to Expect

Core Insights - CarMax, Inc. (KMX) is set to release its fourth-quarter fiscal 2025 results on April 10, with earnings estimated at 64 cents per share and revenues at $5.97 billion [1] - The earnings per share estimate has increased by 2 cents over the past 60 days, indicating a 100% rise compared to the previous year, while revenue is expected to grow by 6.14% year-over-year [2] Financial Performance - In the third quarter of fiscal 2025, CarMax reported adjusted earnings of 81 cents per share, exceeding the Zacks Consensus Estimate of 62 cents and up from 52 cents a year ago [3] - Revenues for the third quarter were$ 6.22 billion, surpassing the Zacks Consensus Estimate of $5.99 billion and reflecting a 1.2% increase from the same quarter last year [3] Strategic Developments - CarMax is the leading used car retailer in the U.S., benefiting from a strong nationwide presence and logistics network [4] - The company plans to open five new stores in fiscal 2025, including smaller cross-functional locations, and has made strategic acquisitions, such as Edmunds, to enhance its digital capabilities [4] Revenue Projections - Estimated revenues from used vehicle sales for the upcoming quarter are projected at$ 4.58 billion, representing a year-over-year growth of 1.8% [5] - Wholesale vehicle sales are expected to generate $892 million, indicating a 0.9% increase, while other revenues are estimated at$ 168.5 million, reflecting an 8.9% growth [5] Earnings Expectations - CarMax has a positive Earnings ESP of +2.44%, suggesting a likelihood of beating earnings estimates [6][7] - The company currently holds a Zacks Rank of 3 (Hold), which, combined with the positive Earnings ESP, enhances the probability of an earnings beat [7]