CarMax (KMX) is expected to exceed estimates and report Q1 sales growth of 4.8% and adjusted EPS of $1.18 despite uncertain consumer trends, RBC Capital Markets said in a note Tuesday.

Used vehicle sales are projected to rise 6.1% while retaining the average selling price, backed by stronger sales movement from March and April after a weak February, the investment firm said.

Gross profit is estimated at $854 million, ahead of consensus, RBC said, adding that, selling, general & administrative cost is expected to grow 3.4% to $660 million, with higher compensation costs and slightly lower overhead spending compared to estimates.

CarMax Auto Finance income is forecast at $136 million, below consensus, according to the note.

Management reiterated its long-term plan for mid-single-digit retail unit growth to drive high-teens EPS growth annually, RBC analysts noted.

RBC maintained an outperform rating and $80 price target for CarMax.

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