CarMax stock rallies after big profit beat, even as revenue fell well short of expectations

Shares of CarMax Inc. KMX rallied 4.0% in premarket trading Tuesday, after the used car seller reported fiscal fourth-quarter profit that was more than double what was expected even as revenue that fell well short of expectations citing “vehicle affordability challenges.” Net income for the quarter to Feb. 28 fell to $69.0 million, or 44 cents a share, from $159.8 million, or 98 cents a share, in the year-ago period. That beat the FactSet consensus of 20 cents. Revenue declined 25.6% to $5.72 billion, which missed the FactSet consensus of $6.11 billion, as used vehicle sales fell 21.1% to $4.53 billion and wholesale vehicle…