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Shares of CarMax (NYSE:KMX) are moving sharply lower in early Thursday trading, down over 13%, after the company posted a major Q4 miss.
The used vehicle retailer reported EPS of $0.24, far below the analyst estimate of $0.73. Revenue for the quarter stood at $6.5 billion, also significantly less than the $7.34B figure analysts had modeled.
The company’s combined retail and wholesale used vehicle sales came in at just shy of 300K units, representing a 28% drop YoY.
Amid weak results, CarMax also announced a pause to its share buyback program, citing the decision to take “a conservative approach to our capital structure.” Prior to the earnings readout, KMX had $2.45B available for stock repurchases.
CEO Bill Nash defended the company against current struggles noting CarMax has “spent almost thirty years building a diversified business that can profitably navigate the ups and downs of the used car industry”, adding “we believe we are well positioned to effectively manage through this cycle.”
Shares of KMX are trading 13% lower in pre-market, further extending a nearly 54% loss YTD.
The company’s peers like AutoNation (NYSE:AN) and Carvana (NYSE:CVNA) are also showing weakness, down 4.5% and 3%, respectively, in early Thursday trade.
