CarMax 2Q Net Rises, But Misses Views
Used-car dealership CarMax (NYSE:KMX) reported a 3.7% rise in fiscal second-quarter earnings thanks to an increase in sales of used and wholesale vehicles, the company reported on Thursday.
However, the results fell short of estimates due to a drop in same-store sales and customer traffic.
The company said the decrease in customer traffic is due to a sluggish economy and continued weakness in consumer confidence.
CarMax reported profit of $111.9 million, or 49 cents per share, for the quarter ended Aug. 31, up from $107.9 million, or 48 cents per share, in the year prior.
Analysts polled by Thomson Reuters projected $2.62 billion in revenue and profit of 51 cents per share.
The company receives most of its revenue from used vehicle sales, and that division of the company grew 6.6% to $2.02 billion. Sales of wholesale vehicles rose 39%, while new vehicle sales were down 8.2%.