CarMax (KMX) Shares Plunge 17.00% on Earnings Miss

CarMax (KMX) shares plummeted 17.00% today, marking the lowest level since November 2023, with an intraday decline of 21.02%.

CarMax's recent stock decline can be attributed to several factors. The company's fiscal fourth-quarter earnings fell short of analysts' expectations, with earnings per share (EPS) coming in at $0.58, below the projected $0.68. Additionally, the company sold fewer used vehicles than anticipated, which contributed to the stock's decline.

CarMax also suspended its timelines for long-term growth targets due to broader macroeconomic uncertainties. This move further influenced investor sentiment negatively, as it raised concerns about the company's future prospects. The potential impact of auto tariffs has added to the pressure on CarMax's stock, leading to a substantial drop in its market value.