CarMax Gears Up to Report Q2 Earnings: Here's What to Expect

CarMax, Inc. KMX is slated to release second-quarter fiscal 2026 results on Sept. 25, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.03 and $7.05 billion, respectively.For the fiscal second quarter, the consensus estimate for CarMax’s earnings has moved down a penny in the past seven days. Its bottom-line estimates imply 21.2% growth from the year-ago reported numbers. The Zacks Consensus Estimate for KMX's quarterly revenues implies year-over-year growth of 0.6%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 11.61%. This is depicted in the graph below:CarMax, Inc. Price and EPS Surprise CarMax, Inc. price-eps-surprise | CarMax, Inc. QuoteHighlights of KMX’s Q1 ResultsIn the first quarter of fiscal 2026, KMX’s adjusted EPS of $1.38 beat the Zacks Consensus Estimate of $1.18 and increased from 97 cents reported in the year-ago quarter. The company reported net sales of $7.55 billion, which topped the Zacks Consensus Estimate of $7.52 billion. The top line also rose 6% year over year.Things to Note Ahead of KMX’s Q2 ReleaseIn the fiscal first quarter, CarMax’s service gross margin improved $30 million year over year. The company started charging certain fees to offset cost pressures it experienced last year and continues to drive process improvements and efficiencies in the service business as committed annually, which led to improvement in year-over-year service margin performance. KMX expects service business to steadily drive margin improvements through cost recovery, operating leverage and ongoing efficiency initiatives. Expected rise in service gross margin is likely to have boosted the performance of CarMax in the to-be-reported quarter.Per S&P Global Mobility, the average age of light vehicles in the United States has risen to 12.8 years in 2025 from 12.6 years in 2025. The rising average age of vehicles reduces demand for vehicles in the wholesale channel, which can soften prices. Average selling price of KMX’s wholesale vehicle declined to $7,959 in the fiscal first quarter from $8,094 in the year-ago period. As a result, wholesale vehicle gross profit per unit declined to $1,047 from $1,064 reported in the year-ago quarter. Amid the high average age of vehicles, the average selling price of vehicles is expected to have remained low. A lower expected average selling price is likely to have impacted CarMax’s margin performance in the fiscal second quarter.Earnings Whispers for KMXOur proven model does not conclusively predict an earnings beat for CarMax for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.KMX’s Earnings ESP: KMX has an Earnings ESP of -6.67%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank of KMX: It currently carries a Zacks Rank #3 (Hold).Earnings Whispers for Other Auto StocksAutoZone, Inc. AZO has an Earnings ESP of -0.33% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is slated to post fourth-quarter fiscal 2025 earnings on Sept. 23. The Zacks Consensus Estimate for earnings is pegged at $50.52 per share.AZO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 4.91%.THOR Industries, Inc. THO has an Earnings ESP of -0.43% and a Zacks Rank #3 at present. The company is slated to post fiscal fourth-quarter 2025 earnings on Sept. 24. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share.THO’s earnings surpassed estimates in two of the trailing four quarters and missed twice, the average negative surprise being 24.07%.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thor Industries, Inc. (THO): Free Stock Analysis Report AutoZone, Inc. (AZO): Free Stock Analysis Report CarMax, Inc. (KMX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks