CarMax Inc (NYSE:KMX) shares fell sharply despite posting an earnings and revenue beat, as underlying sales trends showed signs of softness.
Weak used-vehicle demand and margin pressure overshadowed the headline strength, dragging investor sentiment lower.
Quarterly Performance Details
The company reported fourth-quarter adjusted earnings per share of 34 cents, beating the analyst consensus estimate of 21 cents. Quarterly sales of $5.946 billion outpaced the Street view of $5.681 billion.
Combined retail and wholesale used vehicle unit sales were 303,969, an increase of 0.7% from the prior year’s fourth quarter.
Retail used unit sales fell 0.8%, while comparable store used unit …