By early afternoon, shares had taken off 3.8% to $45.77.
The car dealership recorded net income of 52 cents a share, a penny lower than what analysts surveyed by Thomson Reuters had anticipated.
Revenue of $3.08 billion, though 8.8% higher year over year, was less than forecasts of $3.18 billion.
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TheStreet Ratings team rates CARMAX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARMAX INC (KMX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, reasonable valuation levels, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
- You can view the full analysis from the report here: KMX Ratings Report