CarMax Inc (NYSE:KMX) could highlight its turnaround plans under a new CEO, alongside an activist investor push when the company reports fourth-quarter (Q4) financial results Tuesday before market open.

Here are the earnings estimates, analyst ratings and key items to watch.

Q4 Earnings Estimates

Analysts expect the used vehicle company to report Q4 revenue of $5.73 billion, down from $6.00 billion in last year's Q4, according to data from Benzinga Pro.

CarMax beat analyst estimates for revenue in six of the last 10 quarters, including the most recently reported third quarter.

Analysts expect Q4 earnings per share of 23 cents, down from 64 cents per share year-over-year.

The company has beaten analyst estimates for earnings per share in five of the last 10 quarters, including the third quarter.

Earnings per share have beaten estimates in every other quarter for more than two years with the most recent consecutive beat or miss coming in with the Q4 of 2023 and first quarter of fiscal 2024 with two straight beats.

CarMax Analyst Ratings

Here are the most recent analyst ratings on CarMax stock heading into the quarterly earnings:

  • Evercore ISI: Maintained In-Line rating, lowered price target from $45 to $40
  • Stephens & Co: Maintained Equal-Weight rating, raised price target from $39 to $43
  • Baird: Maintained Outperform rating, raised price target from $44 to $48

Key Items to Watch

Activist investor Starboard Value recently pushed for board changes at CarMax and cost improvements. CarMax recently added two new executives as part of a deal reached with Starboard. The deal signals ongoing discussions and could lead CarMax to push through changes that unlock shareholder value.

Starboard is one of the more well-known activist investors and a company working with them rather than against them could be a positive for shareholders.

CarMax welcomed new CEO Keith Barr on March 16. Barr has over 25 years of experience at IHG Hotels & Resorts, where he spent more than six years as CEO.

With Barr hoping to help with a turnaround and Starboard pushing for changes, the earnings report and management commentary could play key in showing investors what areas will be targeted first.

Higher gas prices could mean consumers keep their vehicles longer. It could also mean trading in gas-powered vehicles for EVs, something that could benefit e-commerce automotive marketplaces like CarMax.

Data previously showed high searches for electric vehicles on CarMax. Expect the company to comment on this growth and what selling more EVs could mean for margins and future growth.

Along with higher EV sales, CarMax could also see consumers trading in vehicles that get low gas mileage for vehicles that get higher gas mileage, as Americans try to estimate how long the pain at the pump will last for.

CarMax Stock Price Action

CarMax stock is up 5.4% To $49.23 on Monday versus a 52-week trading range of $30.26 to $71.99. CarMax stock is up 25% year-to-date in 2026, while shares are down over 27% in the last 52 weeks.

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