RICHMOND, Virginia — CarMax, the chain of used car dealerships, reported better-than-expected earnings in its fiscal first-quarter, but its sales growth came up short as used car prices slipped.
Its shares fell more than 2.5 percent in midday trading Friday.
The Richmond, Virginia-based company reported net income of $182 million, or 86 cents per share, topping Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 85 cents per share.
The used car dealership chain posted revenue of $4.01 billion in the period, which missed forecasts. Eight analysts surveyed by Zacks expected $4.14 billion.
The company said the average sale price of a used car slipped 1.6 percent from a year ago to $19,851 in the first quart.
Shares of CarMax Inc. fell $1.97, or 2.7 percent, to $69.99 in midday trading Friday. The stock is up about 55 percent in the last 12 months.
Keywords: CarMax, Earnings Report