The autograph was posted in front of a Carmax dealer in Santa Rosa, California on April 10th, 2025.
Justin Sullivan | Getty Images News | Getty Images
Detroit – Stocks Carmax It fell 20% on Thursday, reaching the lowest price for the stock in over five years after a used auto retailer missed Wall Street quarterly revenue and revenue expectations.
Carmax shares closed at $45.60 on Thursday. This is the lowest stock range since March 2020, when the coronavirus pandemic shut down US car production and many retailers. This year, the company has dropped by around 44% so far, with the company’s market capitalization of $6.844 billion.
The company’s quarterly results included revenue of approximately $6.6 billion, down 6% year-on-year, adjusting earnings per share of 99 cents. According to LSEG, there are a few special factors. Analysts surveyed by Financial Markets Data Firm had forecast earnings of $1.05 per share and $7.01 billion in revenue.
Other important outcomes such as sales and net profit were also down compared to a year ago. The company’s overall vehicle sales fell 4.1% compared to the same period last year, with net profit falling approximately 28% to $95.4 million.
Carmax CEO Bill Nash described the second quarter, which ended August 31, as a “challenge” in the company’s quarterly release. He cited changes in market conditions. This took on the fear of stock fleet tariffs as a reason for the company’s lack of performance, citing sales at the beginning of the year for depreciation.
“In the quarter, the monthly declined year-over-year, and it was a little weaker throughout the monthly quarter,” Nash told investors during the company’s quarterly call on Thursday. “But certainly, we were in a better position at the start of this quarter in terms of stock location and pricing.”
Stocks in other auto retailers also fell as many investors and Wall Street analysts watch the company’s performance as an early barometer ahead of other quarterly reports.
Other vehicle retailer stocks such as Group 1 car, Automation, Sonic Automotive and Litia Motors It also fell on Thursday, losing around 2% to 6%.
Correction: This story was updated to reflect quarterly earnings per share adjustments.
