Yahoo Finance CarMax stock jumps after topping profit forecast
The Yahoo Finance Live team discusses the rise in CarMax stock despite declining yearly revenue.
Video transcript
JOSH SCHAFER: Shares of CarMax closing today in the green after reporting a better than expected fourth quarter profit. Now, sales falling short of expectations, though, with the company saying vehicle affordability challenges continue to impact those fourth quarter sales. Those fourth quarter sales, Seana, down 15% on a yearly basis. And it really just seems like affordability is a key problem for CarMax here. Of course, the stock closing up 10%, though, on that profit beat, so a little bit of a mixed picture when you think about it moving forward.
SEANA SMITH: Yeah, affordability is a huge issue. And you took a-- you actually found this chart. So I'm going to credit you on this, but we're looking at it right now, the 48-month financing rate, and look at that, up to 7.46%. So certainly a huge challenge here for the car market here going forward. We know used car prices seem to be rising.
We'll get another look at that in tomorrow's inflation print, but according to auction house Manheim, they noted that they are seeing an uptick in used car sales. Goldman saying that it expects to see used car sales to have climbed in the month of March. We talk about affordability a massive issue here with car prices, used car prices trending to the upside. Obviously, that's going to price more and more people out of buying a car.
