We recently published 9 Stocks Jim Cramer Talked About in a Show Where He Advised OpenAI to Slow Down. CarMax, Inc. is one of the stocks Jim Cramer discussed on the show.
CarMax, Inc. is one of the largest used vehicle retailers in America. November hasn’t been a good month for the stock as its shares tumbled by a whopping 24% during trading on the 6th after it announced that its CEO would step down. Alongside the announcement, CarMax, Inc. also shared its outlook for the fiscal third quarter. The outlook suggested that the firm expects to earn $0.18 to $0.36. The earnings guidance was sharply lower than analyst estimates of $0.36. As part of its release, CarMax, Inc.’s management asserted that as it searches for a new CEO, it will focus on sales growth and cost reduction. Cramer discussed the car market as he commented on CarMax, Inc.:
Cars on the road. Photo by Pixabay
“Now Carmax it turned out to be very poorly run and they misjudged the market badly. But they’ve created a wholesale auto glut, which is one of the reasons why, that’s in the CPI, rents, remember. . .”
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This article is originally published at Insider Monkey.
