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Apr 11, 07:04 PM
CarMax Shares Drop 14% After Q4 EPS of $0.58 and $6 Billion in Sales; Securities Fraud Investigation Announced
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CarMax Shares Drop 14% After Q4 EPS of $0.58 and $6 Billion in Sales; Securities Fraud Investigation Announced

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  • Benzinga
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CarMax, Inc. ($KMX) shares fell by 14% following a disappointing Q4 earnings report, with earnings per share (EPS) of $0.58, below the expected $0.66, despite a 6.7% increase in sales to $6 billion. CEO Bill Nash noted strong unit sales, gross profit, and consumer finance (CAF) income, with retail sales up 6.2%, wholesale sales increasing by 3.1%, and vehicle purchases rising by 15.3%. Amid these developments, the company has removed long-term goal timelines. Additionally, a securities fraud investigation has been announced, prompting investors who lost money to contact various law firms, including the Law Offices of Frank R. Cruz and Glancy Prongay & Murray LLP. Over the past month, CarMax shares have decreased by 9.73%, and year-to-date, the stock has dropped by 17.66%. Wedbush has maintained an 'Outperform' rating on the stock but has lowered its price target to $90.

Written with ChatGPT (GPT-4o mini).

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