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
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Disclaimers and LimitationsKMX in upward trend: 10-day moving average moved above 50-day moving average on June 01, 2026
The 10-day moving average for KMX crossed bullishly above the 50-day moving average on June 01, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 26, 2026. You may want to consider a long position or call options on KMX as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KMX just turned positive on May 21, 2026. Looking at past instances where KMX's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
KMX moved above its 50-day moving average on May 26, 2026 date and that indicates a change from a downward trend 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 .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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.
The Aroon Indicator for KMX entered a downward trend on May 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (1.255) is normal, around the industry mean (3.333). P/E Ratio (31.018) is within average values for comparable stocks, (25.238). Projected Growth (PEG Ratio) (0.539) is also within normal values, averaging (0.824). KMX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.017). P/S Ratio (0.297) is also within normal values, averaging (0.962).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 78, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a holding company whose subsidiaries sell and finance used motor vehicles
Industry AutomotiveAftermarket
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