Used vehicle retailer CarMax (KMX Quick QuoteKMX - Free Report) is set to report fiscal first-quarter earnings results on Friday before the bell. KMX, a Zacks Rank #3 (Hold), has a mixed track record when it comes to earnings surprises. But with sales and earnings estimates projecting large year-over-year declines, is KMX a buy?

CarMax is expected to post a profit of $0.74/share, which would reflect negative growth of -52.56% versus the same quarter last year. Estimates for the quarter have dropped -3.9% over the past 60 days. Revenues are projected to fall -21.68% to $7.29 billion.

KMX has surpassed the earnings mark in two of the last four quarters, with an average beat of 0.28% over that timeframe. The leading used car retailer in the United States, CarMax has actively focused on reducing expenses. But increased competition in the used car market presents a major headwind. Investors may consider trimming their exposure ahead of the announcement.