CarMax Stock Drops After Disappointing Quarterly Results
NEW YORK – September 25, 2024 - Shares of CarMax Inc. plunged on Thursday after the company reported quarterly earnings that fell short of Wall Street expectations, signaling potential headwinds for the broader automotive retail sector. The stock decline triggered a ripple effect, pulling down shares of other major car retailers.
carmax reported adjusted earnings per share and revenue figures that missed analyst forecasts. while the company noted it was in a ”better position” with inventory and pricing at the start of the quarter, investors reacted negatively too the overall financial performance.
The company’s results are closely watched by industry observers as an early indicator of how other car retailers are performing. Following CarMax’s report, shares of Group 1 Automotive, Autonation, Sonic Automotive, Carvana, and Lithia Motors all experienced declines, falling by roughly 5% or less during intraday trading midday Thursday.