CarMax hits 2-1/2 yr low as inflation dents demand, drags auto stocks

Vroom

29/09/2022 17:51

(Updates)
    ** Used-car retailer CarMax Inc's shares  KMX.N  fall as
much as 24.2% to hit a near 2-1/2 year low of $65.58
    ** Stock on pace to record its worst day since Jan. 2000
    ** KMX misses estimates for Q2 results, hurt by consumers
cutting spending amid inflation, rising interest rates and
higher car prices 
    ** Reports Q2 revenue of $8.14 bln, vs Refinitiv estimates
of $8.54 bln; profit of 79 cents/share also widely misses
estimate of $1.39/share
    ** Co's total retail used-units sold fell 6.4%, while
used-unit sales in comparable stores were down 8.3%
    ** KMX's dour results drag auto stocks down; automakers Ford
Motor Co  F.N , General Motors Co  GM.N  both down more than 5%
    ** KMX peers AutoNation Inc  AN.N , Lithia & Driveway
 LAD.N  and America's Car-Mart Inc  CRMT.O  down between ~5% and
~9%
    ** Carvana  CVNA.N  leads the losses, falling as much as
~23% to $20.72 
    ** Vroom Inc  VRM.O  and Group 1 Automotive Inc  GPI.N  both
decline ~10% while Asbury Automotive Group Inc  ABG.N  drops ~8%
    ** YTD, KMX down ~49% YTD
 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))