What to Expect From CarMax’s Q1 Earnings?

RBC Capital analysts provided their outlook on CarMax, Inc. (NYSE:KMX) ahead of the company’s upcoming Q1 earnings announcement.

While the analysts continue to believe in the company's long-term share gain opportunity, they are cautious heading into the quarterly results as the Street seems fairly lofty against a deteriorating macro backdrop.

The analysts expect Q1 used units to decline 15.5% year-over-year to 228,700, compared to the Street estimate of 240,100. Street assumes Q1 units grow approximately 24% from Q4, which the analysts believe is aggressive given mounting consumer pressures. The analysts expect quarterly EPS to be $1.49, compared to the Street estimate of $1.59.