CarMax slumps on downbeat Q2 results, drags peers

Vroom

29/09/2022 14:26

(Updates)
    ** Used-car retailer CarMax Inc's shares  KMX.N  down ~16%
at $72.91 premarket
    ** Stock set to open at an over 2-year low if current losses
hold; on track to snap a three-day winning streak
    ** 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 shares of peers AutoNation Inc
 AN.N , Lithia & Driveway  LAD.N  and America's Car-Mart Inc
 CRMT.O  down 5% to 8%, with Carvana  CVNA.N  leading the losses
with a ~10% slump
        ** Vroom Inc  VRM.O , Group 1 Automotive Inc  GPI.N  and
Asbury Automotive Group Inc  ABG.N  also fall between 2.3% and
7%
    ** Up to Wednesday's close, KMX down ~34% YTD
 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))