Why CarMax Shares Are Trading Lower

CarMax Inc KMX shares are trading lower Tuesday morning after the company reported worse-than-expected earnings results. 

CarMax said fourth-quarter revenue increased 48.8% year-over-year to $7.7 billion, which beat the $7.5 billion estimate. The company reported quarterly earnings of 98 cents per share, which came in below the estimate of $1.25 per share. 

CarMax issued long-term guidance, expecting to sell between 2 million and 2.4 million vehicles through combined retail and wholesale channels by fiscal 2026. The company expects to generate between $33 billion and $45 billion in revenue by fiscal 2026.

CarMax reaffirmed growth of nationwide share of the age 0 to 10 used vehicle market of more than 5% by the end of 2025. 

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KMX 52-Week Range: $94.35 - $155.98

According to data from Benzinga Pro, the stock was down 4.11% at $98.93 at time of publication.

Photo: moinzon from Pixabay.