What's Driving CarMax Stock Lower Today?

CarMax Inc KMX shares are trading lower Thursday after the company reported worse-than-expected financial results.

What Happened: CarMax said fiscal third-quarter revenue fell 23.7% year-over-year to $6.5 billion, which missed average analyst estimates of $7.42 billion, according to Benzinga Pro. The company reported quarterly earnings of 24 cents per share, which missed estimates of 72 cents per share.

Total retail sales decreased 20.8% year-over-year. Comparable store sales were down 22.4% year-over-year. 

"In response to the ongoing pressures across the used car industry, we have taken deliberate steps to support our business for both the near-term and the long-term. We are managing our business prudently, and prioritizing initiatives that reduce costs, unlock operating efficiencies, profitably grow market share and create better experiences for our associates and customers," said Bill Nash, president and CEO of CarMax.

CarMax paused its share repurchase program as a result of its third quarter performance and continued market uncertainties. 

The company said it now expects capital expenditures to end the year at approximately $450 million versus its previous estimate of $500 million.

CarMax sells, finances and services used and new cars through a chain of used retail stores.

See Also: CarMax, Micron And 3 Stocks To Watch Heading Into Thursday

KMX Price Action: CarMax has a 52-week high of $131.20 and a 52-week low of $54.85.

CarMax shares are down 12.6% at $51.90 Thursday morning, according to Benzinga Pro.

Photo: courtesy of CarMax.