CarMax (NYSE:KMX) stock is slipping on Tuesday after the company released its earnings report for the fourth quarter of fiscal 2022.
The bad news for KMX stock starts with its diluted earnings per share of 98 cents. That’s worse than the $1.27 per share that Wall Street was expecting from the used car retailer. It also represents a 22.8% drop from the same period of the year prior.
So what weighed down CarMax in its most recent earnings report? The company’s used vehicle unit sales dropped 5.2% to 194,318 during the quarter. This comes alongside a 6.5% decrease in store used unit sales.
CarMax included the following statement in its earnings report to explain the poor used car sales data.
“We believe a number of macro factors weighed on our fourth quarter unit sales performance, including declining consumer confidence, the Omicron-fueled surge in COVID cases, vehicle affordability, and the lapping of stimulus benefits paid in the prior year period.”
It’s also worth noting that despite these negatives, CarMax did see 48.8% revenue growth year over year to $7.7 billion. That’s better than the $7.58 billion in revenue that analysts were expecting for the quarter.
Investors in KMX stock are seeing heavy trading as well with the release of the company’s Q4 earnings report. This has more than 3 million units changing hands as of this writing. For the record, the company’s daily average trading volume is closer to 1.6 million shares.
KMX stock is down 5.1% as of Tuesday morning and is down 22.8% since the start of the year.
Investors on the lookout for more recent stock market news today are in luck!
InvestorPlace has all the stock news traders need to know about for Tuesday! A few examples include Deutsche Bank (NYSE:DB) stock slipping, Zosano Pharma (NASDAQ:ZSAN) stock on the move, as well as this morning’s biggest pre-market stock movers. You can find out more on these matters at the following links!
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.