CarMax (NYSE: KMX ) shares plunged premarket Thursday after the company reported its earnings for the second quarter.
KMX shares are currently down more than 10% premarket, around the $71.70 mark, after closing Wednesday's session at $79.69 per share.
The used vehicle retailer missed the average analyst EPS estimate, coming in at $0.75, $0.03 worse than the consensus expectation of $0.78. Revenue for the quarter came in at $7.1 billion, down 13.1% YoY but above the consensus estimate of $7.01B.
Used vehicle demand during the quarter appeared to have weakened, with retail used unit sales decreasing 7.4% and comparable store used unit sales declining 9% from the prior year’s second quarter. Wholesale units fell 11.2% YoY. Combined retail and wholesale used vehicle unit sales were 342,662, representing a decrease of 9%.
“We continue to drive sequential improvements in our business despite persistent widespread pressures across the used car industry," said Bill Nash, president and chief executive officer of KMX. "Through deliberate steps we are taking to control what we can, we delivered strong retail and wholesale gross profit per unit, reduced SG&A, and stabilized CAF’s net interest margin.”
The company also revealed it intends to resume share repurchases in the third quarter of this year.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.