CarMax Shares Dip On Disappointing Q4 Earnings: Analysts Adjust Expectations
Benzinga
Published Apr 12, 2024 16:12
Updated Apr 12, 2024 17:40
CarMax Shares Dip On Disappointing Q4 Earnings: Analysts Adjust Expectations
Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of CarMax Inc (NYSE: KMX) were falling in early trading on Friday, after the company reported downbeat earnings for its fiscal fourth quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
Needham On CarMax
Analyst Chris Pierce reiterated a Buy rating, while reducing the price target from $99 to $91.
Hopes of an industry recovery have been pushed out due to expectations of Federal Reserve delays interest rate cuts, “putting the burden of growth on share gains,” Pierce said in a note.
CarMax gained share in three of the five months, starting in October, the analyst stated. “A linear path to share gains would clearly be preferable, but we view recent results as thesis confirming,” he added.
Check out other analyst stock ratings.
RBC Capital Markets On CarMax
Analyst Steven Shemesh reaffirmed an Outperform rating, while lowering the price target from $83 to $73.
The company’s fourth-quarter results were “noisy,” Shemesh said. Although there was an improvement in retail comp units, the performance quarter to date is “trending down,” pushing out the long-term unit target, he added.
“It’s tough to have much conviction in a near-term unit recovery – which we think is needed to really drive leverage throughout the model,” the analyst further wrote.
Mizuho Securities On CarMax
Analyst David Bellinger maintained a Neutral rating, while cutting the price target from $80 to $75.
“Consumers seem to be signaling purchase intent for used vehicles, but remain hesitant to transact given ongoing affordability issues,” Bellinger said in a note.
“KMX is making progress with its fifth consecutive quarter of sequential comp sales improvement and guiding to expense leverage on +LSD% gross profit growth,” the analyst wrote. “However, we believe top-line pressures will linger throughout FY24E, pressuring a return to more normalized EPS growth in the process,” he added.
KMX Price Action: Shares of CarMax were down 0.71% to $71.47 at the time of publication on Friday.
Now Read:
Photo: Shutterstock
Latest Ratings for KMX
| Feb 2022 | Evercore ISI Group | Downgrades | Outperform | In-Line |
| Jan 2022 | Seaport Global | Upgrades | Neutral | Buy |
| Dec 2021 | RBC Capital | Maintains | Outperform |
Get The App
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.