On June 17, CarMax (KMX) fell 6.77% in regular trading, trading at $48.41/share, with turnover of $73.15 million. The decline came despite the company reporting better-than-expected quarterly revenue, as investors focused on deteriorating profitability.

On the news front, CarMax reported Q1 revenue of $8.01 billion, surpassing market expectations of $7.4 billion and growing 6.2% year-over-year, driven by a 4.5% increase in average used-car prices and stronger wholesale demand. However, net income fell to $185.6 million from $210.4 million in the prior-year period, while EPS declined to $1.31 from $1.38. Per-unit retail gross profit also contracted year-over-year, and the company warned that auto profit margins will continue to decline. Consumer affordability concerns continue to suppress retail demand, with analysts noting that comparable sales remained roughly flat — far below the approximately 30% growth rate posted by competitor Carvana. Truist Securities maintained a hold rating while raising its price target to $47 from $37.

Within the Automotive Retail sector, Carvana Co. down 6.01%, AutoZone up 0.47%, O'Reilly down 0.13%, Murphy USA down 2.63%, AutoNation down 1.08%.

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