Why Used Vehicle Retailer CarMax's Shares Are Diving Today
Portfolio Pulse from Shivani Kumaresan
Used vehicle retailer CarMax Inc (KMX) reported a Q2 FY24 revenue decline of 13.2% YoY to $7.07 billion, beating the analyst consensus estimate of $7.03 billion. The company sold fewer units due to vehicle affordability challenges, inflationary pressures, higher interest rates, and low consumer confidence. Gross profit was down 5.5% YoY and EPS of $0.75 missed the consensus estimate of $0.78. KMX shares are trading lower by 11.5% in premarket.
September 28, 2023 | 12:17 pm
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CarMax reported a decline in Q2 FY24 revenue and gross profit, and missed EPS estimates. Shares are trading lower.
CarMax's Q2 FY24 results show a decline in revenue and gross profit, and the company missed EPS estimates. These factors, along with the ongoing challenges in vehicle affordability and low consumer confidence, are likely to negatively impact the company's stock price in the short term.
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