01:08 PM EDT, 04/12/2024 (MT Newswires) -- CarMax ( KMX ) reported "noisy" Q4 results, with some green shoots but less visibility into unit normalization, RBC Capital Markets said in a report Friday.

"It's tough to have much conviction in a near-term unit recovery - which we think is needed to really drive leverage throughout the model," RBC analysts Steven Shemesh and Harshi Rasania said.

After the Q4 results, the analysts revised their fiscal 2025 net sales projection to $25.81 billion from $26.62 billion, implying a 2.7% decline from a year earlier. Fiscal 2026 net sales are now expected at $26.77 billion instead of $27.6 billion.

RBC now expects earnings per share of $3.02 for fiscal 2025 and $3.97 for fiscal 2026, against $3.29 and $4.54 previously.

RBC lowered its price target to $73 from $83 while keeping its outperform rating.

"EPS has troughed, though we acknowledge that it could take time for real earnings upside to be unlocked," the analysts said.

Price: 71.51, Change: -0.47, Percent Change: -0.65