Buy Or Sell CarMax Stock Ahead Of Q1 Earnings?

Group 1 - CarMax is set to announce its Q1 FY'26 earnings on June 20th, with expected revenue of approximately $7.56 billion, reflecting a 6% year-over-year increase [2] - Adjusted earnings per share are anticipated to be around $1.19, compared to $0.97 in the same quarter last year [2] - The company has seen revenue growth driven by increased second-hand vehicle sales volume and expanded financing operations [2] Group 2 - CarMax's profitability has improved due to better cost management and digital innovations enhancing customer experience and operational efficiency [2] - The company has a market capitalization of $10 billion and reported a net income of $501 million over the past twelve months [2] - CarMax's total revenue for the last twelve months was $26 billion [2] Group 3 - Historical data shows that CarMax has had 20 recorded earnings data points over the last five years, with 8 positive and 12 negative one-day returns [4] - Positive one-day returns occurred about 40% of the time, increasing to 58% when considering the last three years [4] - The median of the positive returns is 5.9%, while the median of the negative returns is -9.4% [4]