CarMax Stock Sees Decline After Q4 Earnings & Sales Target Update
Thursday, 11 April 2024, 19:35
CarMax hits a bumpy road
Used car market faces challenges with higher interest rates and lower prices post-pandemic peak. Q4 revenue at CarMax declined by 1.7%, missing estimates.
Details:
- Retail unit sales increased by 1.3%, but comparable store sales were up by only 0.1%.
- Wholesale units dropped by 4%.
- Margin remained stable, but EPS decreased to $0.32 from $0.44, below expectations.
CEO Bill Nash remains optimistic about business performance.
CarMax dials back long-term expectations
CarMax faces a setback in reaching its 2 million annual sales goal, now expected between fiscal 2026 and 2030. Revenue targets remain uncertain, indicating market challenges ahead.
Investors are advised caution before investing in CarMax given recent developments and delayed growth projections.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.