The analysts at RBC Capital gave their perspective on CarMax, Inc. (NYSE:KMX) before its Q4/23 which is scheduled for April 11. They have observed that the company’s revenue trends appear to be slightly better than what the Street estimates suggest.
According to the analysts, industry data/checks point to a modest rebound in retail price and unit trends throughout the quarter. While this could result in a modest upside compared to the Street expectations, the analysts noted that it is unlikely to have a material impact on investor sentiment as the broader economic backdrop remains challenging.
The analysts estimate Q4 used units to be down 5% year-over-year, putting used unit sales at 187,000 (vs. Street estimate of 174,100). The analysts remain cautious near term given the uncertain macro backdrop but continue to believe the company is well-positioned to gain share/emerge from a downturn stronger.