CarMax Q4: Analyst Predicts In-Line Results Amid Ongoing Operational Challenges


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


  • William Blair analyst Sharon Zackfia reiterated an Outperform rating on the shares of CarMax Inc (NYSE:KMX).
  • Citing persistent industry headwinds, the analyst has lowered fiscal fourth-quarter used unit comparable sales projection to -11% to -12%, in-line with the consensus.
  • The analyst also lowered the February quarter EPS estimate by $0.04 to $0.21, similar to the consensus of $0.21.
  • The wholesale sales are expected to decline 40%-plus Y/Y due to reallocation of some cars from wholesale to retail to meet the demand for lower-priced cars.
  • The analyst, as previously stated, projects a roughly $90 year-over-year increase in retail GPU to $2,287 on strong inventory management.
  • Following a hiatus after the collapse of SVB, the auto ABS (Asset-Backed Securities) market is opening up, with about four deals priced in late March, said the analyst.
  • As a result, the analyst feels the time favors CarMax to do its typical ABS in late April.
  • For FY24, the analyst expects comparable sales to improve sequentially as the year progresses, with an inflection into positive territory in the second half.
  • CarMax remains a very well-managed profitable company in a very large market.
  • Managing a large pool of fast-depreciating assets, reliance on asset-backed securitizations to fund CarMax Auto Finance, and the inherent economic sensitivity associated with selling big-ticket discretionary items are some of the company's risks.
  • Also ReadCar Market Did Something It Hasn't Done In 8 Months: Pay Attention This Friday
  • Price Action: KMX shares are trading higher by 2.00% at $63.69 on the last check Thursday.

27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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