CarMax Slumps Most in a Year as Profit, Sales Miss Estimatesby
CarMax Inc., the largest U.S. seller of used autos, fell the most in more than a year after posting fiscal third-quarter sales and profit that trailed analysts’ estimates.
Earnings per share excluding some items were 63 cents on revenue of $3.54 billion in the period ended Nov. 30, the Richmond, Virginia-based company said in a statement Friday. The average estimates compiled by Bloomberg were 68 cents and $3.63 billion.
Revenue grew 4.1 percent, the slowest since the quarter that ended in May 2012. Same-store sales volume for used cars slid 0.8 percent, after climbing 7.4 percent in the year-earlier quarter. CarMax said the drop “reflected a modest decrease in store traffic.”
“We had a challenging sales quarter, which together with higher advertising expenses, contributed to the year-over-year decline in third quarter net earnings,” Chief Executive Officer Tom Folliard said in the statement.
The shares slid 6.4 percent to $53.49 at the close in New York for the steepest daily decline since September 2014. They have lost 20 percent this year, outpacing the 2.6 percent decrease for the Standard & Poor’s 500 Index.