By Katherine Hamilton
Carmax shares slipped after the car retailer missed earnings expectations and said it was removing the timeframes for long-term goals due to macroeconomic factors.
Shares fell 8% to $74 in pre-market trading Thursday. The stock is down 2% overall this year after several ups and downs on tariff news.
The Richmond, Va., company posted fourth-quarter earnings per share of 58 cents, below the 66 cents analysts polled by FactSet forecasted. Used-car sales rose 7.5% to $4.84 billion, below the expected $4.87 billion.
Carmax said it was continuing to make progress on its long-term goals, but was doing away with timelines for them "given the potential impact of broader macro factors."
Factors that could cause results and outcomes to differ materially include changes in U.S. economics, inflationary pressures, changing interest rates and tariffs, Carmax said.
Tariffs could be a mixed bag for Carmax, analysts say, because they would likely drive up the cost of both new and used cars. Carmax could attract some customers who switch over to buying a used vehicles from new, but it could also lose out on business if more consumers try to hold off on buying a car altogether.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 10, 2025 08:32 ET (12:32 GMT)
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