CarMax (NYSE:KMX) shares took a 7 percent tumbled today after the used car dealership reported weaker than expected earnings during its third quarter. The company sales have been hurt over the quarter as a shaky economy has hurt consumer confidence.
For the three months which ended on November 30th CarMax reported a net income of $82.8 million, or 36 cents per share. During the same quarter last year the company reported earnings of $82.4 million with the same earnings per share result of 36 cents per share. That result fell 2 cents short of analyst expectations of 38 cents per share.
Revenue during the period rose 7 percent to $2.26 billion, helped by stronger sales at wholesale auctions and a higher overall selling price. Wall Street had predicted revenue of $2.27 billion. Sales at stores open at least one year fell by 3 percent.
Expenses during the three month period rose by 6 percent compared to last year to $232.3 million as the company spent more on advertising.
The company said that it plans to open 10 to 15 new stores per year through till fiscal 2016.
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