With the combined headwinds of skyrocketing inflation and brewing economic jitters, used-car dealership CarMax (KMX) suffered from fading investor sentiment. In the trailing year, KMX stock gave up nearly 23% of equity value, with most of the pain stemming from the tail end of the third quarter last year. However, a decent performance from its most recent earnings disclosure sent shares higher. Better yet, this enthusiasm might not be a one-off deal.
According to Zacks Equity Research, CarMax reported its fiscal Q4 2023 financial report (for the three months ended Feb. 28) Tuesday early afternoon. The company generated earnings per share of 44 cents, topping Wall Street’s consensus target of 22 cents due to “higher-than-anticipated gross profit per unit in the used and wholesale vehicle segments.” However, it’s fair to point out that this represented a steep decline from the EPS of 98 cents posted one year ago.
