CarMax, Inc (NYSE:KMX) stock railled 4% Thursday afternoon on fiscal third-quarter earnings that beat expectations.
The largest US used car dealer posted earnings of $0.52 per share, topping expectations of $0.43 per share. Revenue was $6.15 billion, down 5.5% year-over-year and below expectations of $6.29 billion.
Retail and wholesale unit sales climbed 1.3% from the prior-year quarter to 302,666, while rental unit sales declined 2.9% to 174,766.
“Our third quarter performance reflects the continued efforts of the team that have resulted in several quarters of sequential improvements across key components of our business, despite the persistent widespread pressures in the used car industry,” CEO Bill Nash said in a statement.
“In addition, we continue to be encouraged by the positive impact that our omni-channel investments are having on our business. Some of those benefits include incremental retail customers, web traffic growth and enhanced vehicle sourcing,” he added.
Carmax also announced the reinstatement of its share buyback program, ending a pause started in November.