Earnings Preview: CarMax (KMX) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in CarMax's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3] Earnings Expectations - CarMax is expected to report quarterly earnings of $0.32 per share, reflecting a 60.5% decrease year-over-year [3] - Revenues are projected to be $5.79 billion, down 7% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 6.95% over the last 30 days, indicating a reassessment by analysts [4] - A negative Earnings ESP of -17.56% suggests analysts have become bearish on CarMax's earnings prospects [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but is more reliable for positive readings [7][8] - CarMax's current Zacks Rank is 5, which complicates predictions of an earnings beat [11] Historical Performance - In the last reported quarter, CarMax was expected to earn $1.03 per share but only achieved $0.64, resulting in a surprise of -37.86% [12] - Over the past four quarters, CarMax has beaten consensus EPS estimates twice [13] Conclusion - CarMax does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16]