(Boursier.com) — CarMax plunged in pre-session on Wall Street after the used vehicle retailer missed analysts’ estimates, penalized by the drop in profitability of cars sold. In its fourth fiscal quarter, the group recorded a net profit of $50.3 million or 32 cents per share compared to a profit of $69 million and 44 cents per share a year earlier. The consensus was for EPS of 49 cents. Revenues fell 1.7% to $5.6 billion, compared to $5.8 billion expected.
“We believe vehicle affordability issues continued to impact our unit sales in the fourth quarter, with continued headwinds from widespread inflationary pressures,” the company said. The improved supply of new vehicles has forced used car sellers to cut costs and offer deep discounts on vehicles. In some cases, this has led to vehicles costing less than what they were acquired for.
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