Why CarMax Stock Jumped on Tuesday
Shares of used car retailer CarMax (NYSE: KMX), which is the nation's largest retailer of used autos, are rising on Tuesday. The stock jumped as much as 10.2% but is up about 8% as of 10:35 a.m. ET.
The stock's gain follows the company's fiscal fourth-quarter update, which featured better-than-expected earnings per share, even as revenue fell sharply year over year. Further, the company reaffirmed its long-term vehicle unit sales and financial targets.
CarMax's fiscal fourth-quarter revenue fell 25.6% year over year to $5.7 billion as a surge in broader-market used car sales fades into the rearview mirror. Used vehicle unit sales fell 12.6% year over year and wholesale vehicle sales declined 19.3%. Over this same time frame, used and wholesale average selling prices declined 9.3% and 27.8%, respectively.
Source Fool.com
