Carmax shares hit 52-week low after it misses quarterly estimates

Core Insights - The company reported a disappointing quarter with all key metrics falling below expectations, including earnings per share (EPS) of 99 cents compared to the expected $1.05 and revenue that also missed forecasts [1] - Vehicle sales decreased by 4.1% year-over-year, affecting both wholesale and retail segments [2] Financial Performance - Loan loss provisions for the quarter increased by 26.3% compared to the previous year, indicating potential issues with loans written in 2022 and 2023 [2][3] - The average used auto loan payment is currently $529 per month, reflecting the challenging financial environment for consumers [5] Market Concerns - There are rising concerns about delinquencies in the auto loan market, with current delinquency rates reported at 2.54%, which is an increase from the second quarter of 2023 but still below the levels seen during the 2008-2009 recession [3][4] - The negative performance of CarMax has led to pressure on other companies in the used auto market, such as Carvana and Group One, although some of these stocks recovered later in the trading day [4][5]