CarMax's Stock Falls After Sales Miss Expectations

Shares of CarMax Inc. fell 2% in premarket trade Friday, after the used car dealer reported fiscal first-quarter sales that rose less than expected. For the quarter ended May 31, earnings rose to $182 million, or 86 cents a share, from $169.7 million, or 76 cents a share, in the same period a year ago. That was above the FactSet consensus earnings-per-share estimate of 85 cents. Sales rose 7.1% to $4.01 billion, below the FactSet consensus of $4.14 billion, with 7.6% growth in used vehicle sales offsetting a 14% decline in new vehicle sales. Used vehicle unit sales in comparable stores increased 4.9%, missing the FactSet consensus of 5.6%. The company said it spent $119.9 million to buy back 1.8 million shares during the quarter, leaving $2.25 billion remaining in its share repurchase program. The stock has climbed 8.1% year to date through Thursday, while the S&P 500 has gained 3%.