CarMax Stock Drops 13% Despite Beating Q2 Estimates

Shares of CarMax (NYSE: KMX), the nation's largest retailer of used cars, dropped over 13% during early Thursday trading despite the auto retailer delivering second-quarter 2021 results that topped analysts' estimates on the top and bottom lines.

After the initial automotive sales downturn caused by the spread of COVID-19 and social distancing, CarMax's second quarter showed strong momentum during the summer months. Net sales and operating revenue increased 3.3% to $5.37 billion versus the prior year, which topped analysts' estimates of $5.22 billion. The top line was driven by a solid 3.9% increase in total unit sales, and a 1.2% rise in comparable-store unit sales.

Second-quarter earnings per share jumped nearly 28% to $1.79, easily topping analysts' estimates calling for $1.10 per share.

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Source Fool.com