AN - CarMax earnings beat boosts Carvana auto dealer peers

2023-04-11 10:22:48 ET

CarMax ( NYSE: KMX ) stock surged to a double-digit gain after posting stronger than expected profits for Q4. The positivity from its print appeared to lift many boats in its sector.

CarMax reported a 12.6% decline in retail used unit sales alongside a 19.3% decline in wholesale units sold. However, gross profit per retail unit of $2,277 reflected an $82 per unit increase year over year while cost-cutting measures also aided an earnings per share report that far outpaced expectations .

Short interest in CarMax ( KMX ) stood at 14.67% as of Tuesday morning, perhaps helping to propel about a 10% gain for shares on the online auto seller during the early trading session. Short interest was also likely a boost to Carvana ( CVNA ) +9.45% and Vroom ( VRM ) +5.99% , which sport short interest of 61.79% and 16.29%, respectively.

Lithia Motors ( LAD ) +6.03% , Sonic Automotive ( SAH ) +3.8% , AutoNation ( AN ) +2.7% , Asbury Automotive Group ( ABG ) +2.53% ,  and Group 1 Automotive ( GPI ) +1.9% also marked notable gains on Tuesday.

Read more on CarMax’s earnings result .

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