Used automotive vehicle retailer Carmax (NYSE: KMX) will be reporting results this Tuesday before the bell. Here’s what investors should know.

CarMax beat analysts’ revenue expectations last quarter, reporting revenues of $5.79 billion, down 6.9% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

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

This quarter, the market is expecting CarMax’s revenue to decline 4.6% year on year, a reversal from the 6.7% increase it recorded in the same quarter last year.

Analysts covering the company have generally 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 multiple 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 missed analysts’ revenue estimates, delivering year-on-year sales growth of 8.1%. The stock was down 4.3% on the results.

There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 3.3% on average over the last month. CarMax is up 12.2% during the same time and is heading into earnings with an average analyst price target of $40.92 (compared to the current share price of $46.79).

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