These Analysts Cut Their Forecasts On CarMax After Downbeat Q2 Results

CarMax Inc (NYSE: KMX) posted weaker-than-expected second-quarter results on Thursday.

The used-car retail giant reported second-quarter earnings per share of 64 cents, missing the analyst consensus estimate of $1.09. Quarterly sales of $6.594 billion (down 6% year over year) missed the Street view of $7.024 billion.

The company bought 293,000 vehicles in total in the second quarter, a 2.4% decrease. Of these, 262,000 came from consumers (down 2.7%) and 31,000 from dealers (up 0.2%).

"While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that we have built," said Bill Nash, president and chief executive officer.

CarMax shares fell 0.4% to $45.41 on Friday.

These analysts made changes to their price targets on CarMax following earnings announcement.

• Needham analyst Chris Pierce maintained CarMax with a Buy and lowered the price target from $92 to $60.
• Evercore ISI Group analyst Michael Montani downgraded CarMax from Outperform to In-Line and cut the price target from $80 to $52.
• Baird analyst Craig Kennison maintained the stock with an Outperform rating and lowered the price target from $90 to $60.
• RBC Capital analyst Steven Shemesh maintained CarMax with an Outperform rating and lowered the price target from $81 to $59.
• Truist Securities analyst Scot Ciccarelli maintained the stock with a Hold and lowered the price target from $74 to $47.

Considering buying KMX stock? Here’s what analysts think:

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