CarMax (NYSE: KMX) stock was on a downslide in pre-market trading on Thursday as the used car retailer’s Q3 results left investors disappointed.
KMX’s net revenues dropped by 23.7% year-over-year to $6.5 billion in the third quarter and fell short of analysts’ expectations by $680 million. CarMax’s net earnings also declined to $0.24 per diluted share in Q3 versus $1.63 in the same period a year earlier.
Analysts were expecting earnings of $0.65 per share.
The company is also scaling back on its capex and now expects to incur capital expenditures of around $450 million versus its earlier estimate of $500 million in FY23. KMX has also paused its stock buyback program.
Analysts are cautiously optimistic about KMX stock with a Moderate Buy consensus rating based on four Buys and seven Holds.
