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CarMax sees used-car prices rise for first time in more than 2 years - MarketWatch

1. CarMax's Q4 profit disappointed, missing EPS estimates significantly. 2. Used-vehicle unit sales rose 6.2%, the fastest growth in three years. 3. Average selling price increased 0.6%, ending a streak of declining prices. 4. Net income rose but was lower than expected EPS of 66 cents. 5. Stock fell 8.2% in premarket after the results were released.

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FAQ

Why Bearish?

The significant EPS miss coupled with a sharp stock drop suggests weakened investor sentiment. Past instances of missed earnings estimates have often led to temporary stock declines.

How important is it?

The disappointing earnings results reveal underlying issues that could impact future performance. Earnings releases strongly influence stock prices due to investor perception.

Why Short Term?

Immediate investor reactions from earnings usually affect stock prices quickly. Historical patterns indicate short-lived impacts post-results announcements.

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