23.09.2016 - CarMax Quarterly Report has disappointed the market
Shares of used cars retailer CarMax is under the pressure of a weak report for the 2nd quarter of the fiscal year. Net income totaled 162.4 million US dollars, compared with 172.2 million for the same period last year. On the other hand, revenue increased to 4.00 billion dollars, that is 0.12 billion dollars more than last year. The median forecast of revenue growth was 4.11 billion dollars. Sales of used vehicles were up 7.0%, compared with a forecast of 2.9%. According to our estimates, the share price may show a decline of 10-12% in the near future, and our medium-term outlook also remains negative.