US EditionCarMax stock plummets 20% following 'challenging' quarter that missed Wall Street's expectations
CarMax reported earnings per share of 99 cents and $6.6 billion revenue, missing estimates and showing a 4.1% drop in vehicle sales, causing a 20% stock decline.
- On Thursday, CarMax shares plunged more than 20% in early trading after the used auto retailer missed Wall Street expectations.
- CarMax reported earnings per share of 99 cents and roughly $6.6 billion in revenue, missing analysts' forecasted $1.05 and $7.01 billion, leading to a 20% stock drop.
- CarMax's vehicle sales fell 4% year over year, with net income declining roughly 28% to $95.4 million, reflecting weaker demand during the challenging quarter.
- Investor nervousness hit peer stocks across the auto-retail sector, with Group 1 Automotive, Penske Automotive Group, Sonic Automotive and Lithia Motors down roughly 2% or less, while AutoNation and Carvana fell about 4%.
- CarMax's chief executive described the quarter ended Aug. 31 as `challenging` and announced a $150 million SG&A spending cut over 18 months; market capitalization stands at $6.9 billion with $521 million trailing profit and 13.2 times earnings.
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These Analysts Cut Their Forecasts On CarMax After Downbeat Q2 Results - CarMax (NYSE:KMX)
CarMax Inc (NYSE: KMX) posted weaker-than-expected second-quarter results on Thursday. The used-car retail giant reported second-quarter earnings per share of 64 cents, missing the analyst consensus estimate of $1.09. Quarterly sales of $6.594 billion (down 6% year over year) missed the Street view of $7.024 billion. The company bought 293,000 vehicles in total in the second quarter, a 2.4% decrease. Of these, 262,000 came from consumers (down 2…
Why CarMax Stock Crashed Today @themotleyfool #stocks $KMX
Key PointsWall Street analysts forecast strong earnings growth for CarMax last quarter.Instead, profits fell 25%.CarMax stock looks cheap -- but profits must resume growing for it to be a bargain.10 stocks we like better than CarMax › CarMax (NYSE: KMX) turned into a one-car pileup Thursday, falling 19.7% through 2:15 p.m. ET after reporting worse-than-expected earnings for its fiscal second quarter, ended Aug. 31. Heading into the report, analy…
CarMax second-quarter profit falls as used-car demand slumps
CarMax reported a fall in second-quarter profit on Thursday, as waning demand for used vehicles continued to weigh on the U.S. pre-owned vehicle market, sending the company's shares down nearly 13% in premarket trade.
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