CarMax Shares Sputter Following Lower Revenues

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. CarMax, Inc KMX shares were trading lower by $2.10 at $69.86 in Friday's session. Despite meeting Q1 EPS estimates at $0.86, the Street appears to be focusing on its shortfall in revenues ($4.01 billion vs. $4.15 billion estimates). After a sharply lower open ($69.14 vs. Thursday's close of $71.96), it continued lower until it found support at $68.25 and staged a nice rebound. That level coincides with its May 1 low of $68.17. The ensuing rally has taken the issue to $70.39, which is well shy of Thursday's low ($71.72), which is needed to fill the gap in price.