CarMax Q2 Results Disappoint; Shares Move Lower

Investors punished CarMax, Inc.

shares for not delivering the expected results for the second quarter. While its adjusted earnings came in line, revenue was below the Street estimates. The company reported net earnings of $162.36 million, down from $172.23 million while EPS rose from $0.82 to $0.84. Its results included $6.8 million, or $0.04 per share, in respect of equity awards held by its recently retired CEO. On an adjusted basis, it would earned $0.88 a share and met the Street expectations of $0.88 a share. CarMax net sales and operating revenues rose 2.9 percent from $3.88 billion to $4.0 billion and came in below the analysts' estimates of $4.1 billion. Its comparable stores recorded 3.1 percent growth in the second quarter. In the pre-market trading on Wednesday, the stock shed $3.26, or 5.85 percent, to $52.50.