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CarMax Gears Up to Report Q4 Earnings: Here's What to Expect
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Key Takeaways
KMX reports Q4 on Apr. 14 with EPS expected at 19 cents and revenues at $5.69B, both down year over year.
CarMax's Edmunds acquisition and Recurrent partnership expand digital tools and used EV battery insights.
KMX targets $150M SG&A cuts by fiscal 2027 post workforce reductions amid weaker sales volumes.
CarMax, Inc. (KMX - Free Report) is slated to release fourth-quarter fiscal 2026 results on April 14, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 19 cents and $5.69 billion, respectively.
The consensus estimate for CarMax’s quarterly earnings has moved down a penny in the past 30 days. The bottom-line estimate implies a 70.3% decline from the year-ago reported numbers.
The Zacks Consensus Estimate for KMX’s quarterly revenues suggests a 5.2% year-over-year decline. The company's earnings beat estimates in two of the trailing four quarters, missed once and met in the other, delivering an average surprise of 9.62%. This is depicted in the graph below:
In the third quarter of fiscal 2026, KMX’s adjusted EPS of 51 cents beat the Zacks Consensus Estimate of 32 cents and declined from 81 cents reported in the year-ago quarter. The company reported net sales of $5.8 billion, which marginally exceeded the Zacks Consensus Estimate of $5.7 billion. The top line fell 6.9% year over year.
Things to Note Ahead of KMX’s Q4 Release
CarMax is riding high on strategic buyouts and collaborations. The acquisition of Edmunds has bolstered its position in the used auto market, enhancing digital capabilities and technology expertise. The collaboration with Recurrent provides unique insights into used EV batteries, reinforcing CarMax's leadership in the used EV sales sector.
The auto retailer is taking strategic steps to streamline operations and enhance profitability. CarMax aims to cut at least $150 million in SG&A expenses by the end of fiscal 2027. In the fiscal third quarter, the company made its first significant move toward this goal by trimming its CEC workforce by roughly 30%, supported by process enhancements and technology upgrades. Acquisition strength and reduction in operating expenses are likely to have improved the company’s performance in the to-be-reported quarter.
However, CarMax’s service margins were negative in the fiscal third quarter and remained under pressure due to softer sales volumes, as margins tend to deteriorate when sales slow. The company also projected continued pressure on fourth-quarter sales, which likely impacted its service margins.
Here are our estimates for the company’s key performance metrics.
The Zacks Consensus Estimate for used vehicle units sold for the to-be-reported quarter is pegged at 182,158 units, suggesting a year-over-year decline of 0.3%. The Zacks Consensus Estimate for average selling price (ASP) of used vehicles is pegged at $25,562, implying a decline of 2.2% from the year-ago period’s level.
The Zacks Consensus Estimate for wholesale vehicle units sold for the fourth quarter is pegged at 117,113 units, suggesting a year-over-year decline of 1.7%. The Zacks Consensus Estimate for ASP of the wholesale vehicle is pegged at $7,538, calling for a 6.3% decline from the year-ago quarter’s level.
Earnings Whispers for KMX
Our proven model does not conclusively predict an earnings beat for CarMax this time around, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
KMX’s Earnings ESP: KMX has an Earnings ESP of -1.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
THOR Industries, Inc. (THO - Free Report) reported second-quarter fiscal 2026 (ended Jan. 31) results on March 3. It reported earnings of 4 cents per share, which beat the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, the company posted a loss of 1 cent. THOR registered revenues of $2.13 billion for the fiscal second quarter, surpassing the Zacks Consensus Estimate of $1.98 billion. The top line increased 5.3% year over year.
As of Jan. 31, 2026, THOR had cash and cash equivalents of $242.2 million and long-term debt of $877.7 million. THOR expects its fiscal 2026 consolidated net sales to be in the range of $9-$9.5 billion compared with $9.58 billion in fiscal 2025. EPS is expected to be in the range of $3.75-$4.25 compared with $4.84 in fiscal 2025.
AutoZone, Inc. (AZO - Free Report) reported second-quarter fiscal 2026 (ended Feb. 14, 2026) numbers on March 3. It posted earnings of $27.63 per share, which beat the Zacks Consensus Estimate of $27.1. The company posted earnings of $28.29 per share in the year-ago quarter. Net sales rose 8.2% year over year to $4.27 billion but slightly missed the Zacks Consensus Estimate of $4.31 billion.
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CarMax Gears Up to Report Q4 Earnings: Here's What to Expect
Key Takeaways
CarMax, Inc. (KMX - Free Report) is slated to release fourth-quarter fiscal 2026 results on April 14, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 19 cents and $5.69 billion, respectively.
The consensus estimate for CarMax’s quarterly earnings has moved down a penny in the past 30 days. The bottom-line estimate implies a 70.3% decline from the year-ago reported numbers.
The Zacks Consensus Estimate for KMX’s quarterly revenues suggests a 5.2% year-over-year decline. The company's earnings beat estimates in two of the trailing four quarters, missed once and met in the other, delivering an average surprise of 9.62%. This is depicted in the graph below:
CarMax, Inc. Price and EPS Surprise
CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote
Highlights of KMX’s Q3 Results
In the third quarter of fiscal 2026, KMX’s adjusted EPS of 51 cents beat the Zacks Consensus Estimate of 32 cents and declined from 81 cents reported in the year-ago quarter. The company reported net sales of $5.8 billion, which marginally exceeded the Zacks Consensus Estimate of $5.7 billion. The top line fell 6.9% year over year.
Things to Note Ahead of KMX’s Q4 Release
CarMax is riding high on strategic buyouts and collaborations. The acquisition of Edmunds has bolstered its position in the used auto market, enhancing digital capabilities and technology expertise. The collaboration with Recurrent provides unique insights into used EV batteries, reinforcing CarMax's leadership in the used EV sales sector.
The auto retailer is taking strategic steps to streamline operations and enhance profitability. CarMax aims to cut at least $150 million in SG&A expenses by the end of fiscal 2027. In the fiscal third quarter, the company made its first significant move toward this goal by trimming its CEC workforce by roughly 30%, supported by process enhancements and technology upgrades. Acquisition strength and reduction in operating expenses are likely to have improved the company’s performance in the to-be-reported quarter.
However, CarMax’s service margins were negative in the fiscal third quarter and remained under pressure due to softer sales volumes, as margins tend to deteriorate when sales slow. The company also projected continued pressure on fourth-quarter sales, which likely impacted its service margins.
Here are our estimates for the company’s key performance metrics.
The Zacks Consensus Estimate for used vehicle units sold for the to-be-reported quarter is pegged at 182,158 units, suggesting a year-over-year decline of 0.3%. The Zacks Consensus Estimate for average selling price (ASP) of used vehicles is pegged at $25,562, implying a decline of 2.2% from the year-ago period’s level.
The Zacks Consensus Estimate for wholesale vehicle units sold for the fourth quarter is pegged at 117,113 units, suggesting a year-over-year decline of 1.7%. The Zacks Consensus Estimate for ASP of the wholesale vehicle is pegged at $7,538, calling for a 6.3% decline from the year-ago quarter’s level.
Earnings Whispers for KMX
Our proven model does not conclusively predict an earnings beat for CarMax this time around, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
KMX’s Earnings ESP: KMX has an Earnings ESP of -1.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of KMX: It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earning Releases From Auto Space
THOR Industries, Inc. (THO - Free Report) reported second-quarter fiscal 2026 (ended Jan. 31) results on March 3. It reported earnings of 4 cents per share, which beat the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, the company posted a loss of 1 cent. THOR registered revenues of $2.13 billion for the fiscal second quarter, surpassing the Zacks Consensus Estimate of $1.98 billion. The top line increased 5.3% year over year.
As of Jan. 31, 2026, THOR had cash and cash equivalents of $242.2 million and long-term debt of $877.7 million. THOR expects its fiscal 2026 consolidated net sales to be in the range of $9-$9.5 billion compared with $9.58 billion in fiscal 2025. EPS is expected to be in the range of $3.75-$4.25 compared with $4.84 in fiscal 2025.
AutoZone, Inc. (AZO - Free Report) reported second-quarter fiscal 2026 (ended Feb. 14, 2026) numbers on March 3. It posted earnings of $27.63 per share, which beat the Zacks Consensus Estimate of $27.1. The company posted earnings of $28.29 per share in the year-ago quarter. Net sales rose 8.2% year over year to $4.27 billion but slightly missed the Zacks Consensus Estimate of $4.31 billion.