Shares of CarMax (KMX) are down 12% after the used car retailer issued quarterly financial results that fell short of Wall Street forecasts.
For what was its fiscal second quarter, the Richmond, Virginia-based company posted earnings per share (EPS) of $0.64 U.S., which was well below Wall Street’s consensus call for $1.04 U.S.
Revenue in the period totaled $6.59 billion U.S., which was below the consensus estimate of $7.01 billion U.S. Sales were down 6% from a year earlier.
Same-store unit sales declined 6.3% from a year ago. Wall Street had growth of 1.1% penciled in for the company.
In its earnings release, CarMax CEO Bill Nash said: “While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model…”
The poor results were mainly due to a 4.1% drop in combined retail and wholesale used vehicle sales.
CarMax has struggled to attract customers and is losing ground to competitors such as AutoNation (AN) and Carvana (CVNA).
CarMax declined to provide any formal guidance with its latest financial report.
Prior to today (Sept. 25), CarMax’s stock had fallen 30% this year to trade at $57.05 U.S. per share.
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