CarMax's (KMX) fiscal Q1 was moderately better, helped by better than expected gross profit, wholesale results and consumer finance income, though comparable used-vehicle sales remained slightly negative, Truist said in a note on Wednesday.
Used-vehicle comparable sales fell 0.8%, compared with Truist's forecast for flat growth, while gross profit per unit was $2,177, above the brokerage's $2,118 estimate, according to the note.
The brokerage said CarMax's new strategy focused on pricing, customer experience, ancillary sales and cost reductions addresses key issues, but the company remains caught between online rival Carvana (CVNA) and traditional dealerships with deeper inventories.
Truist maintained its hold rating and $47 price target on the stock.
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