fell Wednesday even after the used car retailer posted higher-than-expected revenue from strong unit sales.
The stock declined 3.1% to $132.69 on Wednesday. Shares have gained 40% in 2021.
Revenue rose nearly 65% and hit a record high of $8.5 billion. The company sold 415,054 cars in the period, up 29.3% from the prior-year period. CarMax said retail used unit sales jumped 16.9% to a third-quarter record of 227,424 vehicles; wholesale units increased 48.5% to 187,630 vehicles, also a third-quarter record.
Wall Street was expecting CarMax (ticker: KMX) to report revenue of $7.4 billion.
Comparable-store used unit sales at CarMax increased 15.8%. Third-quarter earnings were $1.63 a share, beating analysts’ expectations of $1.45.
“Our top-line momentum continued into this quarter and we achieved record levels of third quarter unit sales in both retail and wholesale, generating all-time record revenue,” said Bill Nash, CEO at CarMax.
For every retail used unit, gross profit was $2,235, an increase of $84 from last year. Total gross profit increased to $836.6 million, up 32.5% from last year’s third quarter.
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