Why CarMax Stock Dropped 11.7% This Week
Shares of CarMax (NYSE: KMX) are down 11.7% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the used vehicle retailer announced disappointing quarterly results and delayed a key long-term vehicle sales target.
For CarMax's fiscal fourth quarter ended Feb. 29, revenue declined 1.7% year over year to $5.63 billion. On the bottom line, that translated to net earnings of $50.3 million, or $0.32 per share, down 27.3% from $0.44 per share in the same year-ago period. Analysts, on average, were modeling earnings of $0.46 per share on revenue closer to $5.81 billion.
Retail used unit sales grew 1.3% year over year, while used unit comparable-store sales rose a modest 0.1%. Wholesale units declined 4%.
Source Fool.com
