CarMax Inc. (KMX, Financial)Â will release its financial results for full fiscal 2018 and its last three months on Wednesday.
For the quarter, the largest used car dealership in the U.S. is expected to close the reporting period with an earnings per share of 88 cents, up 7 cents from the prior-year quarter. That is a mean of 77 cents to $1.01 per share.
Earnings are backed on predicted revenue of $4.21 billion. That is a 4% growth from the same quarter of fiscal 2017 and a mean of 13 estimates. The low limit of the range is $4.11 billion and the high limit is $4.37 billion.
As of April 2, analysts also have produced 17 estimates on CarMax’s full fiscal 2018 revenue. The estimates range is of $17.01 billion to $17.41 billion. That has $17.25 billion mean value, which is an 8.7% growth from full fiscal 2017.
The company operates in two reportable segments: CarMax Sales Operations and CarMax Auto Finance. The graphic powered by GuruFocus illustrates the trend in CarMax revenue over the last 5 fiscal years.
Shares of CarMax have been down-trending since the beginning of 2018. The stock lost 7% on the New York Stock Exchange. The stock is trading at $59.92 per share, about $5.63 above the 52-week low price per share of $54.29. The 52-week high price per share is $77.64. According to GuruFocus’ chart, the stock is underneath the 200, 100 and 50-SMA lines:
The market capitalization is $10.84 billion with a price-earnings ratio of 16.06, a price-book ratio of 3.29 and a price-sales ratio of 0.65.
The forward P/E ratio is 13.89 and the forecasted EPS for fiscal 2019 is $4.48. Combining GuruFocus' estimate on the forward P/E ratio with analysts’ estimates on full 2019 EPS returns a value of $62.23. The stock may look undervalued.
The average target price is $77.71 per share and the recommendation rating is 2.4 out of 5. GuruFocus gives CarMax a financial strength of 4 out of 10 and a Profitability & Growth rating of 8 out of 10.
Disclosure: I have no positions in CarMax.
