An indication is posted in entrance of a CarMax dealership on April 10, 2025 in Santa Rosa, California.
Justin Sullivan | Getty Images News | Getty Images
DETROIT — Shares of CarMax had been down by greater than 20% in early buying and selling Thursday after the used auto retailer missed Wall Street’s quarterly earnings and income expectations.
CarMax shares had been buying and selling early Thursday below $45 — the stock’s lowest value since March 2020, when the coronavirus pandemic closed down U.S. auto manufacturing and lots of retailers. The stock is down round 46% this yr, with a lower than $6.7 billion market cap.
The firm’s outcomes included earnings per share of 99 cents and income of roughly $6.6 billion, down 6% from a yr earlier. Analysts surveyed by LSEG had anticipated earnings per share of $1.05 and income of $7.01 billion.
CarMax CEO Bill Nash described the corporate’s second fiscal quarter that ended Aug. 31 as “challenging” within the company’s quarterly release.
Other key outcomes, reminiscent of gross sales and web earnings, had been additionally down in contrast with a yr earlier. The firm’s total car gross sales fell 4.1% in contrast with the identical interval a yr earlier, helping in a roughly 28% decline in web earnings to $95.4 million.
Shares of different automobile retailers had been additionally down after CarMax’s outcomes, as many buyers and Wall Street analysts watch the corporate’s efficiency as an early barometer forward of different quarterly reporting.
Shares of Group 1 Automotive, Penske Automotive Group, Sonic Automotive and Lithia Motors had been all down roughly 2% or much less. AutoNation’s stock was off roughly 4%, as was Carvana‘s stock.