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What Analyst Projections for Key Metrics Reveal About CarMax (KMX) Q3 Earnings

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In its upcoming report, CarMax (KMX - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.61 per share, reflecting an increase of 17.3% compared to the same period last year. Revenues are forecasted to be $5.99 billion, representing a year-over-year decrease of 2.6%.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 2.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific CarMax metrics that are commonly monitored and projected by Wall Street analysts.

According to the collective judgment of analysts, 'Net sales- Wholesale vehicles' should come in at $1.05 billion. The estimate suggests a change of -9.5% year over year.

The collective assessment of analysts points to an estimated 'Net sales- Other' of $160.75 million. The estimate indicates a year-over-year change of +6.3%.

Based on the collective assessment of analysts, 'Net sales- Used vehicles' should arrive at $4.77 billion. The estimate suggests a change of -1.3% year over year.

Analysts' assessment points toward 'Other sales and revenues- Extended protection plan revenues' reaching $99.90 million. The estimate indicates a year-over-year change of +10%.

Analysts forecast 'Number of stores - Total' to reach 249. Compared to the current estimate, the company reported 240 in the same quarter of the previous year.

Analysts predict that the 'Revenue per vehicle retailed (ASP) - Used vehicles' will reach $26.14 thousand. The estimate is in contrast to the year-ago figure of $27.23 thousand.

The combined assessment of analysts suggests that 'Gross Profit per Unit - Used vehicles gross profit' will likely reach $2,282.14. Compared to the present estimate, the company reported $2,277 in the same quarter last year.

It is projected by analysts that the 'Gross Profit per Unit - Wholesale vehicles gross profit' will reach $979.95. The estimate compares to the year-ago value of $961.

The consensus estimate for 'Revenue per vehicle retailed (ASP) - Wholesale vehicles' stands at $8.01 thousand. The estimate is in contrast to the year-ago figure of $8.67 thousand.

The consensus among analysts is that 'Unit sales - Total vehicles' will reach 313,731. The estimate compares to the year-ago value of 302,666.

The average prediction of analysts places 'Unit sales - Used vehicles' at 180,545. The estimate compares to the year-ago value of 174,766.

Analysts expect 'Unit sales - Wholesale vehicles' to come in at 133,185. Compared to the current estimate, the company reported 127,900 in the same quarter of the previous year.

View all Key Company Metrics for CarMax here>>>

Shares of CarMax have demonstrated returns of +10.6% over the past month compared to the Zacks S&P 500 composite's +1.2% change. With a Zacks Rank #2 (Buy), KMX is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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