The stock price of CarMax, the largest retailer of used cars in the U.S., is free-falling after releasing its latest earnings report, which lacks a timeframe for long-term goals.
CarMax (No. 141 on the Fortune 500) reported on Thursday results for its fourth quarter that ended February 28. Results slightly missed expectations on the top and bottom lines. The company also removed the timelines associated with achieving its long-term targets “given the potential impact of broader macro factors.” Shares have fallen more than 18% as of mid-day Thursday.
Bill Nash, president and CEO of CarMax, was asked on Thursday morning’s earnings call for further explanation of why the timeline was removed and whether the company had a pessimistic outlook on the economy. “It definitely wasn’t pessimistic,” Nash said.
But, he added: “Why put a target out there that's really speculative, not knowing exactly where this environment is going to go?” Despite publicly not offering guidance the company still intends to reach its long-term goals, he said.
