CarMax (KMX) is expected to benefit from improving industry trends in fiscal Q4, but could face headwinds from recent macro events, RBC Capital Markets said in a Tuesday note.
The report said net sales forecast now is for a decline of about 4.4% for the quarter, compared with prior estimate of a 6.8% fall, while adjusted EPS estimate is kept at $0.34.
"The raise is driven by several data sources pointing to better overall industry trends," the note said.
Still, recent macro developments could offset the benefits of higher tax refunds and dampen consumer confidence, it added.
The Q4 results are due on April 14. RBC kept its sector perform rating and $37 price target.
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