William Blair Reiterates Outperform On CarMax Following 2Q Sales


In a research report issued yesterday, William Blair analyst Sharon Zackfia reiterated an Outperform rating on CarMax Inc (NYSE:KMX). No price target was provided. The report followed weaker august second-quarter sales, which fell slightly below consensus expectations

Zackfia said, “We expect gross profit per used car to remain relatively flat at $2,175, and, in the wholesale business, we expect gross profit per used car to increase $93 to $942, yielding a 30-basis-point increase in overall gross margin to 13.7%. With some moderation in wholesale prices in August, we see the potential for our wholesale profit estimates to be somewhat aggressive, which could yield roughly a penny of risk to our EPS estimate.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sharon Zackfia has a total average return of 19.7% and a 61.9% success rate. Zackfia is ranked #434 out of 3275 analysts.

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