Wall Street is high on CarMax, expecting it to report earnings that are up 12% from a year ago when it reports its first-quarter earnings on Friday, June 19, 2015. The consensus estimate is 85 cents per share, up from earnings of 76 cents per share a year ago.
The consensus estimate remains unchanged over the past month, but it has increased from three months ago when it was 84 cents. Analysts are projecting earnings of $3.02 per share for the fiscal year. Revenue is expected to be $4.15 billion for the quarter, 11% higher than the year-earlier total of $3.75 billion. For the year, revenue is projected to roll in at $15.84 billion.
Revenue dropped year-over-year in the fourth quarter, breaking the three-quarter streak of revenue growth.
The profit drop in the fourth quarter followed the net income increase in the quarter prior. In the fourth quarter, net income fell 16% to $143.1 million. In the third quarter, net income rose 22%.
The majority of analysts (58%) rate CarMax as a buy. This compares favorably to the analyst ratings of seven similar companies, which average 50% buys.
CarMax is a retailer of used vehicles in the United States. The company also sells new vehicles under franchise agreements with Chrysler, General Motors, Nissan, and Toyota. Other companies in the retail (specialty) industry with upcoming earnings release dates include: Group 1 Automotive, Sonic Automotive and Penske Automotive Group.
Earnings estimates provided by Zacks.
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