Used automotive vehicle retailer Carmax (NYSE:KMX) will be reporting results tomorrow before market open. Here’s what to expect.

CarMax met analysts’ revenue expectations last quarter, reporting revenues of $7.11 billion, down 7.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ gross margin estimates.

Is CarMax a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting CarMax’s revenue to decline 3.5% year on year to $6.83 billion, improving from the 13.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CarMax has missed Wall Street’s revenue estimates six times over the last two years.

Looking at CarMax’s peers in the automotive and marine retail segment, only AutoZone has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 9%.

Read our full analysis of AutoZone’s earnings results here.

There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 2.2% on average over the last month. CarMax is down 9.1% during the same time and is heading into earnings with an average analyst price target of $80.75 (compared to the current share price of $76.70).

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