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CarMax Shares Move Sharply Lower Following Inline Q4 Earnings

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Shares of CarMax, Inc (NYSE: KMX) were trading lower by more than 5 percent Thursday morning after the company reported its fourth quarter results.

CarMax said it earned $0.71 per share in the fourth quarter on revenue of $3.71 billion. Wall Street analysts were expecting the company to earn $0.71 per share on revenue of $3.68 billion.

Net earnings for the quarter fell 1.5 percent from a year ago to $141 million. For the full fiscal year, net earnings rose 4.4 percent to $623.4 million.

CarMax noted that used unit sales in comparable stores rose 0.7 percent in the fourth quarter, while total used unit sales rose 4.0 percent while total wholesale unit sales rose 2.3 percent in the quarter.

CarMax added that its market share within the 0 to 10 year old used car market rose by approximately 1 percent throughout calendar year 2015.

"While we faced a somewhat more challenging sales environment in the second half of the year, we delivered solid revenue and EPS growth in both the fourth quarter and the fiscal year, we opened a record number of stores and we made progress toward optimizing our capital structure by buying back 16.3 million shares in fiscal 2016," said Tom Folliard, chief executive officer.

 

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