Why Did Carmax Stock Tumble 24% Today?

2025-09-25 03:17:34

(MENAFN- AsiaNet News)

Shares of CarMax (KMX) slumped 24% on Thursday morning after the company's second-quarter earnings fell below Wall Street expectations, sparking a downgrade by Wedbush.

Total vehicle sales for the company declined 4.1% year-over-year in the quarter to 338,031 units, resulting in a 6% decrease in revenue to $6.59 billion, which fell short of the estimated $7.02 billion. Net earnings per share came in at $0.64, down from $0.85 in the corresponding quarter of 2024.

CEO Bill Nash admitted that the quarter was“challenging,” but said the company remains confident in its long-term strategy. Wedbush subsequently downgraded CarMax to 'Neutral' from 'Outperform' and revised the price target to $54, down from $84.

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