UPDATE: Goldman Sachs Color on CarMax PT Decrease

Goldman Sachs, which lowered its PT on shares of CarMax (NYSE: KMX), is providing some color on the stock.

“We lower our 1Q EPS estimate into Wednesday's print and now look for $0.45 vs. $0.48 prior, $0.44 a year ago, and $0.47 consensus,” Goldman Sachs writes. “The reduction is primarily the result of our lower retail used same-store sales expectation, which we reduce to +7% vs. +10% previously, given the slowdown in historically correlated industry new and used vehicle industry sales and given our concern for potential ‘sticker shock' as KMX acts to pass along strong wholesale auction price increases at retail.

“We see partial offsets in higher wholesale gross profits and lower credit losses, given increased collateral value. Our 2011 estimate goes to $1.78 from $1.85. Flow-through of these changes to future periods reduce 2012E and 2013E EPS slightly, by $0.05 each, to $2.05 and $2.25, respectively.”

CarMax closed Monday at $29.28.