CarMax Reinvestment Strategy to Pressure Near-Term Earnings, RBC Says

MT Newswires Live12-19

CarMax (KMX) posted fiscal Q3 results that were in line to slightly ahead of its "soft" intra-quarter guidance, RBC Capital Markets said in a note Thursday.

The company's decision to invest in pricing and advertising will improve its competitive positioning in the long-term, while inevitably putting pressure on near-term earnings, RBC said.

The firm also highlighted strength in the company's auto finance business with income rising 9% year over year to $175 million.

For Q4, RBC expects total net sales to decline about 7% year over year and adjusted earnings per share of $0.34.

For fiscal 2027, the firm expects sales to decline by roughly 3% and models adjusted EPS of $2.43.

RBC maintained a sector perform rating on CarMax and raised its price target to $37 from $34.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2592716747?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-12-19 21:43","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2592716747","market":"sg","top_or_hot":-1,"title":"CarMax Reinvestment Strategy to Pressure Near-Term Earnings, RBC Says","media":"MT Newswires Live","content":"<html><body><p> CarMax (KMX) posted fiscal Q3 results that were in line to slightly ahead of its \"soft\" intra-quarter guidance, RBC Capital Markets said in a note Thursday.</p><p>The company's decision to invest in pricing and advertising will improve its competitive positioning in the long-term, while inevitably putting pressure on near-term earnings, RBC said.</p><p>The firm also highlighted strength in the company's auto finance business with income rising 9% year over year to $175 million.</p><p>For Q4, RBC expects total net sales to decline about 7% year over year and adjusted earnings per share of $0.34.</p><p>For fiscal 2027, the firm expects sales to decline by roughly 3% and models adjusted EPS of $2.43.</p><p>RBC maintained a sector perform rating on CarMax and raised its price target to $37 from $34.</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CarMax Reinvestment Strategy to Pressure Near-Term Earnings, RBC Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCarMax Reinvestment Strategy to Pressure Near-Term Earnings, RBC Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2025-12-19 21:43</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> CarMax (KMX) posted fiscal Q3 results that were in line to slightly ahead of its \"soft\" intra-quarter guidance, RBC Capital Markets said in a note Thursday.</p><p>The company's decision to invest in pricing and advertising will improve its competitive positioning in the long-term, while inevitably putting pressure on near-term earnings, RBC said.</p><p>The firm also highlighted strength in the company's auto finance business with income rising 9% year over year to $175 million.</p><p>For Q4, RBC expects total net sales to decline about 7% year over year and adjusted earnings per share of $0.34.</p><p>For fiscal 2027, the firm expects sales to decline by roughly 3% and models adjusted EPS of $2.43.</p><p>RBC maintained a sector perform rating on CarMax and raised its price target to $37 from $34.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KMX","symbol_name":"车美仕","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2592716747","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2592716747","pubTimestamp":1766151828,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"CarMax  posted fiscal Q3 results that were in line to slightly ahead of its \"soft\" intra-quarter guidance, RBC Capital Markets said in a note Thursday.The company's decision to invest in pricing and advertising will improve its competitive positioning in the long-term, while inevitably putting pressure on near-term earnings, RBC said.The firm also highlighted strength in the company's auto finance business with income rising 9% year over year to $175 million.For Q4, RBC expects total net sales to decline about 7% year over year and adjusted earnings per share of $0.34.For fiscal 2027, the firm expects sales to decline by roughly 3% and models adjusted EPS of $2.43.RBC maintained a sector perform rating on CarMax and raised its price target to $37 from $34.","collect":0,"end_time":0,"defaultTopTitle":"","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"KMX":"车美仕"},"translate_title":"加拿大皇家银行表示，CarMax再投资策略将给近期盈利带来压力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KMX":1.5},"content_text":"CarMax (KMX) posted fiscal Q3 results that were in line to slightly ahead of its \"soft\" intra-quarter guidance, RBC Capital Markets said in a note Thursday.The company's decision to invest in pricing and advertising will improve its competitive positioning in the long-term, while inevitably putting pressure on near-term earnings, RBC said.The firm also highlighted strength in the company's auto finance business with income rising 9% year over year to $175 million.For Q4, RBC expects total net sales to decline about 7% year over year and adjusted earnings per share of $0.34.For fiscal 2027, the firm expects sales to decline by roughly 3% and models adjusted EPS of $2.43.RBC maintained a sector perform rating on CarMax and raised its price target to $37 from $34.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2592716747","isCrawlerRequest":true}