CarMax's Stock Tumbles After Profit And Sales Miss

CarMax Inc.'s stock tumbled 9% in premarket trade Friday, after the car seller missed fiscal third-quarter profit and sales expectations, hurt by disappointing used vehicle sales and higher advertising expenses. For the quarter ended Nov. 30, earnings were $128.2 million, or 63 cents a share, compared with $130 million, or 60 cents a share in the same period a year ago; the FactSet EPS consensus was 68 cents. Revenue rose 4.1% to $3.54 billion, below the FactSet consensus of $3.61 billion. Same-store used unit sales surprisingly declined 0.8%, compared with the FactSet consensus of a 1.9% increase, as a decrease in store traffic was only modestly offset by an improved conversion rate. The stock has shed 14% year to date through Thursday, while the S&P 500 has slipped 0.8%.