CarMax Inc.: F1Q27 Review: Strategy emerging with more details to come; Focus on operations could limit NT growth

Research evidence excerpt

CarMax Inc.: F1Q27 Review: Strategy emerging with more details to come; Focus on operations could limit NT growth

Equity Research

U.S. Auto Retail

18 June 2026

CarMax Inc.

F1Q27 Review: Strategy emerging

with more details to come; Focus Earnings Review

KMX UNDERWEIGHTon operations could limit NT

Unchanged

U.S. Auto Retail NEUTRALgrowth

KMX F1Q27 EPS above Barclays & Street. Results likely driven Price Target USD 37.00

more by mkt conditions than operational improvements, but raised 19% from USD 31.00

Price (17-Jun-26) USD 47.43

we are encouraged by the steps KMX is taking to right-size the Potential Upside/Downside -22.0%

business. Focus on improving operations could limit growth Source: Bloomberg, Barclays Research

in F2027. Raise estimates and PT moves to $37. Market Cap (USD mn) 6730

Shares Outstanding (mn) 141.91

F1Q27 above Barclays & Street; High expectations and rate news weigh on Free Float (%) 99.45

stock 52 Wk Avg Daily Volume (mn) 4.0

KMX reported F1Q27 results that were solidly above both Barclays and the Street. See our First Dividend Yield (%) N/A

Look report for additional details. That said, the stock declined -9.0% post reporting (vs. S&P Return on Equity TTM (%) 3.59

500 -1.2%). We believe this was driven by several factors: 1) There may have been some profit Current BVPS (USD) 43.12

Source: Bloomberg

taking after the stock climbed +41% from May 15 vs. S&P 500 +1.4%); 2) Our discussions suggest

investors had expected stronger growth than the reported same-store volume decline of -0.8%;

and 3) News that more Fed officials signaled a rate hike is likely could have implications on used Price Performance Exchange-NYSE

vehicle demand. 52 Week range USD 71.99-30.26

Early commentary on strategy for growth is encouraging