CarMax, Inc (KMX) Stock Down on Q2 Earnings Miss

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CarMax, Inc (NYSE:KMX) stock was down on Wednesday after the used vehicle dealer released its earnings report for the second quarter of 2017.

CarMax, KMX stockCarMax reported earnings per share of 84 cents for the fiscal second quarter of 2017. This is a 2.4% increase from the 82 cents per share that it reported during the same time last year. However, it failed to surpass the earnings per share of 88 cents that Wall Street was looking for this quarter.

KMX also reported revenue of $3.99 billion for the second quarter of the fiscal year. The company reported revenue of $3.88 billion, or about 3% lower than revenue in the second quarter of 2017, during the fiscal second quarter of 2016. Analysts were expecting the company to report revenue of $4.1 billion for the fiscal second quarter of 2017.

Net earnings reported by CarMax for the fiscal second quarter of 2017 came in at $162.4 million. This is a $9.9 million, or 5.7%, drop from the net earnings reported by KMX during the fiscal second quarter of 2016.

CarMax noted that its used vehicle unit saw sales increase by 7% in the fiscal second quarter of the year. Comparable store used unit sales rose 3.1%  in the second quarter of fiscal 2017. Despite this positive news, the company noted that store traffic was down in the quarter.

KMX also said that its other sales and revenue were down 4.8% in the fiscal second quarter of 2017. This was due to the company closing two of its four new vehicle franchises and new vehicle sales decreasing.

KMX stock was down by 2% as of Noon Wednesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/carmax-kmx-stock/.

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