CarMax posts lower net profit
DETROIT (Reuters) - CarMax Inc <KMX.N>, the largest U.S. retailer of used cars, on Wednesday posted a lower quarterly profit and cut its outlook for the year, hurt by increased funding costs related to its auto finance unit.
Net income in the third quarter fell to $29.8 million, or 14 cents a share, compared with $45.4 million, or 21 cents a share, in the year-earlier quarter.
Wall Street analysts on average had expected the company to post 17 cents a share in the third quarter, according to Reuters Estimates.
CarMax shares dropped more than 6 percent before the bell to $20.25 in premarket trading.
Net sales and operating revenue rose 7 percent to $1.89 billion from $1.77 billion a year before.
Comparable store used-vehicle sales were flat in the quarter compared with a 13 percent increase last year.
For the fiscal year ending February 29, the company now sees earnings per share of 87 cents to 93 cents and comparable store used-unit sales growth of about 2 percent.
The company previously forecast earnings of 92 cents to 98 cents a share for the year.
(Reporting by Poornima Gupta and Ben Klayman, editing by Maureen Bavdek)