CarMax (KMX) Q1 Fiscal 2027 Earnings Preview: What Analysts Are Watching
Key Takeaways
- CarMax is scheduled to report first quarter fiscal 2027 results on June 17, 2026, before market open.
- Consensus estimates call for earnings per share of $0.94 and revenue of approximately $7.54 billion.
- Investors will focus on used vehicle unit sales, retail margins, and wholesale performance amid a challenging auto retail environment.
- Year-over-year comparisons reflect expectations for modest revenue declines and lower earnings versus the prior-year quarter.
- Guidance updates and commentary on inventory levels and consumer demand will shape post-earnings sentiment.
Why This Earnings Report Matters
CarMax stands as the largest retailer of used vehicles in the United States, so its quarterly results often serve as a useful indicator for consumer spending on larger discretionary purchases. The upcoming release covers the first quarter of fiscal 2027, which ended May 31, 2026. In recent periods the company has shown some earnings resilience even as sales volumes softened, thanks in part to cost discipline and contributions from financing income. With used-car prices appearing more stable and interest rates staying elevated, this report should offer clues on whether demand is starting to recover or if it faces additional headwinds as the summer selling season approaches.
What Wall Street Expects
Analysts are projecting CarMax will deliver earnings per share of $0.94 for the quarter, representing a decline of roughly 32% from the same period a year earlier. Revenue is forecast to come in near $7.54 billion, essentially flat to modestly lower year over year. The metrics drawing the most attention include retail used vehicle unit sales, average selling prices, gross profit per unit, and wholesale vehicle revenue. I’m also looking for any updates to full-year guidance along with management’s views on inventory acquisition costs and financing trends. CarMax shares have historically shown notable movement around earnings, often reacting to surprises in unit volumes or margin outcomes.
Market Sentiment Heading Into the Report
Investor sentiment appears cautious at the moment, with shares trading near multi-month lows amid broader worries about consumer spending and auto retail demand. Estimates have been trimmed modestly in recent weeks, reflecting more tempered expectations for volume growth. A result that exceeds expectations on units or margins could trigger a relief move higher, while any downside surprises might heighten concerns about a slower recovery in the used-vehicle market.
Key Areas to Watch After the Release
Once the numbers are out, attention will turn to management’s outlook for the balance of fiscal 2027. Retail used vehicle sales volumes and the ability to maintain pricing discipline to support gross margins will be closely followed. Wholesale operations and any commentary on inventory levels matter as well, since they affect both near-term revenue and future acquisition costs.
Financing income generated by CarMax’s lending platform continues to be an important contributor, so updates on credit performance and origination trends will be relevant. Broader factors such as new-vehicle supply, interest rate movements, and consumer confidence could also influence demand in upcoming quarters.
Cost management and efficiency efforts are likely to feature in the forward discussion given the competitive landscape. Any color on capital allocation, including potential share repurchases or other strategic moves, may provide additional insight into longer-term priorities.
How Tickeron’s AI Screener Fits Into My Research Process
When preparing for earnings like these, I often turn to Tickeron’s AI Screener to quickly compare CarMax against peers on technical patterns, fundamentals, and recent performance metrics. It helps surface relevant data points without having to manually comb through dozens of screens. AI Screener
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsMomentum Indicator for KMX turns negative, indicating new downward trend
KMX saw its Momentum Indicator move below the 0 level on July 06, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned negative. In of the 92 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for KMX moved out of overbought territory on June 17, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for KMX turned negative on June 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KMX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KMX broke above its upper Bollinger Band on June 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 50-day moving average for KMX moved above the 200-day moving average on June 29, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KMX advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 211 cases where KMX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KMX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.167) is normal, around the industry mean (3.427). P/E Ratio (31.242) is within average values for comparable stocks, (25.359). Projected Growth (PEG Ratio) (0.509) is also within normal values, averaging (0.844). Dividend Yield (0.000) settles around the average of (0.018) among similar stocks. P/S Ratio (0.277) is also within normal values, averaging (1.201).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KMX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company whose subsidiaries sell and finance used motor vehicles
Industry AutomotiveAftermarket
Advertisement