CarMax's Stock Slips After Profit Beats Expectations But Revenue Just Misses

Shares of CarMax Inc. slipped 0.6% in premarket trade Tuesday, after the used car seller beat fiscal third-quarter profit expectations, but came up a bit short on sales. Earnings for the quarter to Nov. 30 rose to $136.6 million, or 72 cents a share, from $128.2 million, or 63 cents a share, in the same period a year ago. The FactSet earnings-per-share consensus was 70 cents. Revenue rose 4.4% to $3.70 billion, just below the FactSet consensus of $3.74 billion, although same-store sales growth of 5.4% beat expectations of a 4.2% rise. Total used unit sales increased 9.1% while wholesale unit sales declined 2.2%. Average selling prices for used vehicles declined 2.9% to $19,520. The stock has climbed 16% year to date through Monday, while the S&P 500 has gained 11%.