CarMax Inc (NYSE:KMX) shares plummeted on Thursday after the used car sales platform’s fourth quarter profits disappointed.
For Q4, CarMax reported earnings per share (EPS) of $0.58, missing estimates of $0.66.
Revenue of $6 billion, up 6.7% year-over-year, was narrowly ahead of estimates of $5.98 billion.
Retail used unit sales increased by 6.2% to 182,655 units sold. CarMax auto finance (CAF) income increased by 8.2%, financing 42.3% of units sold.
For the full year, CarMax retailed a 3.7% share of the nationwide age 0-10 year old used vehicle market.
“We delivered robust EPS growth driven by increases in unit sales and buys, strong growth in total gross profit, an increase in CAF income, and ongoing management of SG&A,” said Bill Nash, CarMax CEO.
The company also removed timeframes for its long-term goals citing “the potential impact of broader macro factors.”
Shares of CarMax fell 19.1% to about $65 on Thursday morning.