CarMax sinks 25% after terrible quarterly results

5:31 PM 29 September 2022

CarMax (KMX.US) stock plunged over nearly 25.0% after the auto retailer posted disappointing quarterly figures as “affordability challenges” had a negative impact on sales.

  • Company earned 79 cents per share in the second quarter, which represents a 54% decline compared to the same period last year and well below market expectations of $1.39 per share. Revenue increased 1% to $8.1 billion, also missing analysts' projections of  $8.54 billion. 

  • Retail vehicle sales fell 6.4% to 216,939 units, while used unit sales in comparable stores were down 8.3%.

  • CarMax plans to open 10 new stores in its 2023 fiscal year.

  • “As we navigate the near-term pressures facing our industry, we are further sharpening our focus on driving additional operational efficiencies across our business. We will also remain focused on continuing our work to achieve our long-term goals, including further improving our omnichannel experience for our customers and associates through enhancing the seamlessness of our online and in-store offerings and growing our diversified business model,” CarMax said in a statement.

  • Auto research firm Cox Automotive, which monitors U.S. vehicle market trends, yesterday lowered its outlook for new and used vehicle sales due to deteriorating sentiment among potential buyers, while Moody's downgraded the global Automotive industry to "negative" from "stable" earlier in the day, therefore CarMax investors should be ready for more pain to come.

CarMax (KMX.US) shares tumbled 25% to $66.24 to hit a more than two-year low and are heading towards key support at $63.20, which coincides with 78.6% Fibonacci retracement of the upward wav launched in March 2020. Should break lower occur, downward move may deepen towards pandemic lows around $37.90. Source: xStation5

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app
Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language