CarMax (NYSE: KMX) stock plunged in pre-market trading on Thursday after the used automobile retailer reported disappointing Q2 results. The company’s revenues went up by 2% year-over-year to $8.1 billion but fell short of analysts’ estimates by $410 million.
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Earnings came in at $0.79 per diluted share versus $1.72 in the same period a year back. Wall Street analysts had forecasted earnings of $1.39 per share.
Bill Nash, President, and CEO of CarMax commented, “While this was a challenging quarter across the used car industry, our ongoing progress in strengthening and expanding our omnichannel experience continues to positively differentiate us and enable us to grow market share.”
Is KMX a Good Stock to Buy?
Analysts are cautiously optimistic about KMX stock with a Moderate Buy consensus rating and an average price target of $107 which points to a 23.81% potential upside in the stock.
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