CarMax (KMX) saw a decline in premarket trading on Thursday following its fiscal fourth-quarter results, which fell short of analysts' expectations. The company, based in Virginia, reported earnings per share of $0.58 on net sales of $6.00 billion, higher than the previous year's figures of $0.32 and $5.63 billion. However, this was lower than the projected $0.68 EPS and $5.99 billion in sales by analysts polled by Visible Alpha.

CarMax sold a total of 301,811 used vehicles in the quarter, including 182,655 retail and 119,156 wholesale units, which was below consensus estimates. Analysts had expected a combined total of 312,800 units, consisting of 185,900 retail and 126,900 wholesale vehicles.

The company decided to suspend its previously announced long-term growth targets for fiscal 2026 due to potential impacts of broader macroeconomic factors. Analysts had anticipated CarMax reaching 2 million annual vehicle sales between fiscal 2026 and 2030, with an expected revenue of $33 billion and a market share of 5% for ten-year-old used vehicles.

Experts predict that both new and used car prices may rise significantly due to tariffs imposed by the Trump administration. CarMax shares, down 4% in the past year as of Thursday, dropped an additional 8% post-report. In the previous quarter, the stock had seen a surge after CEO Bill Nash attributed better-than-expected results to a more stable vehicle valuation environment.