CarMax’s stock falls, as profit and revenue beat but same-store sales surprisingly declines

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Shares of CarMax Inc. fell 1.4% in premarket trading Tuesday, after the used-car retailer beat profit and revenue expectations, but same-store sales that surprisingly declined, as demand softened in the latter half of the quarter. The company said it believes some of the factors that hurt sales were the surge in COVID-19 cases and uncertainty around the election and future stimulus programs. Net income rose to $235.3 million, or $1.42 a share, from $173.2 million, or $1.04 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.13. Total revenue rose 8.2% to $5.18 billion, above the FactSet consensus of $5.01 billion, as used vehicle sales grew 4.5% to $4.21 billion, in line with expectations of $4.21 billion. Same-store used unit sales fell 0.8%, compared with the FactSet consensus of a 3.5% increase. The average selling price of used vehicles rose 3.3% to $21,402, and jumped 23.0% for wholesale vehicles to $6,245. The stock has slipped 3.7% over the past three months through Monday, while the S&P 500 has advanced 11.4%.
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