CarMax Stock Rises on Strong Q3 Results

by Warren Seah

CarMax, the leading used-car retailer, experienced a significant increase in stock value following the release of their latest quarterly report. Despite reporting a mixed quarter, the company’s earnings per share exceeded Wall Street’s expectations, leading to a surge in stock buybacks.

According to FactSet, CarMax reported earnings of 52 cents per share for its fiscal third quarter ended November 30th. This surpasses the estimated 38 cents per share and reflects significant growth compared to the 24 cents per share the company earned during the same period last year.

While CarMax’s revenue of $6.15 billion fell short of the anticipated $6.29 billion, the company remained optimistic about its performance. Total retail used-unit sales saw a decline of 2.9% compared to the previous year, with comparable-store used-unit sales dropping by 4.1%.

Bill Nash, President and CEO of CarMax, expressed his satisfaction with their third-quarter performance despite the challenges faced by the used-car industry. He credited the team’s efforts for the consistent improvements seen across various aspects of their business.

As a result of the favorable report, CarMax stock saw a 6.4% increase to $79.48 in premarket trading. This brings the year’s total gains to 23%.

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