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CarMax (KMX) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Analysts on Wall Street project that CarMax (KMX) will announce quarterly earnings of $1.02 per share in its forthcoming report, representing a decline of 12.1% year over year. Revenues are projected to reach $7.23 billion, declining 5.9% from the same quarter last year.

The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

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That said, let's delve into the average estimates of some CarMax metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Net sales- Wholesale vehicles' to come in at $1.35 billion. The estimate points to a change of -10.7% from the year-ago quarter.

The consensus estimate for 'Net sales- Other' stands at $172.52 million. The estimate indicates a change of +0.8% from the prior-year quarter.

Based on the collective assessment of analysts, 'Net sales- Used vehicles' should arrive at $5.70 billion. The estimate suggests a change of -5% year over year.

Analysts' assessment points toward 'Other sales and revenues- Extended protection plan revenues' reaching $110.37 million. The estimate points to a change of -0.8% from the year-ago quarter.

The consensus among analysts is that 'Revenue per vehicle retailed (ASP) - Used vehicles' will reach $26.43 thousand. Compared to the current estimate, the company reported $27.26 thousand in the same quarter of the previous year.

It is projected by analysts that the 'Number of stores - Total' will reach 246. Compared to the present estimate, the company reported 241 in the same quarter last year.

The average prediction of analysts places 'Unit sales - Total vehicles' at 374,023. Compared to the current estimate, the company reported 378,972 in the same quarter of the previous year.

Analysts forecast 'Unit sales - Used vehicles' to reach 216,002. The estimate compares to the year-ago value of 217,924.

The combined assessment of analysts suggests that 'Unit sales - Wholesale vehicles' will likely reach 158,021. The estimate is in contrast to the year-ago figure of 161,048.

According to the collective judgment of analysts, 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' should come in at $8.44 thousand. Compared to the present estimate, the company reported $9.02 thousand in the same quarter last year.

Analysts predict that the 'Gross Profit per Unit - Used vehicles gross profit' will reach $2,392.71. Compared to the current estimate, the company reported $2,361 in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Gross Profit per Unit - Wholesale vehicles gross profit' of $1,025.91. Compared to the present estimate, the company reported $1,042 in the same quarter last year.

View all Key Company Metrics for CarMax here>>>

Over the past month, shares of CarMax have returned -4% versus the Zacks S&P 500 composite's +3.7% change. Currently, KMX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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