Heard on the Street; CarMax's Share Buybacks Turned Lemonade into Lemons -- WSJ

Dow Jones04-10

By Jonathan Weil

How's this for a clunker?

Timing the market amid the recent tariff-fueled volatility is hard even for stock pickers buying shares of the companies they know best-themselves.

A case in point: CarMax, the used-car dealer, which today announced quarterly earnings that missed analysts' estimates. CarMax in its earnings release said it repurchased 1.2 million shares of common stock for $98.5 million, or about $82 a share, during the three months ended Feb. 28. The stock today was trading for about $65, down about 18% on the day, and was the worst performer in the S&P 500. It is down 22% since the start of its just-reported fiscal quarter.

By reducing CarMax's share count, the buybacks appear to have added about a penny to CarMax's fiscal fourth-quarter earnings per share, going by the company's disclosures. It was an expensive penny.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

April 10, 2025 13:15 ET (17:15 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2526117465?lang=en_US&edition=full_marsco","thumbnail":"","is_english":true,"pubTime":"2025-04-11 01:15","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2526117465","market":"us","top_or_hot":-1,"title":"Heard on the Street; CarMax's Share Buybacks Turned Lemonade into Lemons -- WSJ","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n       By Jonathan Weil \n</p>\n<p>\n     How's this for a clunker? \n</p>\n<p>\n     Timing the market amid the recent tariff-fueled volatility is hard even for stock pickers buying shares of the companies they know best-themselves. \n</p>\n<p>\n     A case in point: CarMax, the used-car dealer, which today announced quarterly earnings that missed analysts' estimates. CarMax in its earnings release said it repurchased 1.2 million shares of common stock for $98.5 million, or about $82 a share, during the three months ended Feb. 28. The stock today was trading for about $65, down about 18% on the day, and was the worst performer in the S&amp;P 500. It is down 22% since the start of its just-reported fiscal quarter. \n</p>\n<p>\n     By reducing CarMax's share count, the buybacks appear to have added about a penny to CarMax's fiscal fourth-quarter earnings per share, going by the company's disclosures. It was an expensive penny. \n</p>\n<p>\n       This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 10, 2025 13:15 ET (17:15 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Heard on the Street; CarMax's Share Buybacks Turned Lemonade into Lemons -- WSJ</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHeard on the Street; CarMax's Share Buybacks Turned Lemonade into Lemons -- WSJ\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-04-11 01:15</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n       By Jonathan Weil \n</p>\n<p>\n     How's this for a clunker? \n</p>\n<p>\n     Timing the market amid the recent tariff-fueled volatility is hard even for stock pickers buying shares of the companies they know best-themselves. \n</p>\n<p>\n     A case in point: CarMax, the used-car dealer, which today announced quarterly earnings that missed analysts' estimates. CarMax in its earnings release said it repurchased 1.2 million shares of common stock for $98.5 million, or about $82 a share, during the three months ended Feb. 28. The stock today was trading for about $65, down about 18% on the day, and was the worst performer in the S&amp;P 500. It is down 22% since the start of its just-reported fiscal quarter. \n</p>\n<p>\n     By reducing CarMax's share count, the buybacks appear to have added about a penny to CarMax's fiscal fourth-quarter earnings per share, going by the company's disclosures. It was an expensive penny. \n</p>\n<p>\n       This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 10, 2025 13:15 ET (17:15 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4548","symbol_name":"巴美列捷福持仓","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2526117465","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2526117465","pubTimestamp":1744305300,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Timing the market amid the recent tariff-fueled volatility is hard even for stock pickers buying shares of the companies they know best-themselves.A case in point: CarMax, the used-car dealer, which today announced quarterly earnings that missed analysts' estimates. CarMax in its earnings release said it repurchased 1.2 million shares of common stock for $98.5 million, or about $82 a share, during the three months ended Feb. 28. The stock today was trading for about $65, down about 18% on the day, and was the worst performer in the S&P 500. It is down 22% since the start of its just-reported fiscal quarter.By reducing CarMax's share count, the buybacks appear to have added about a penny to CarMax's fiscal fourth-quarter earnings per share, going by the company's disclosures. It was an expensive penny.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL .","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4548":"巴美列捷福持仓","LMND":"Lemonade, Inc.","BK4551":"寇图资本持仓","BK4535":"淡马锡持仓","BK4214":"汽车零售","BK4585":"ETF&股票定投概念","BK4549":"软银资本持仓","BK4107":"财产与意外伤害保险","BK4588":"碎股","KMX":"车美仕"},"translate_title":"在街上听到的；CarMax的股票回购将柠檬水变成了柠檬——《华尔街日报》","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KMX":1,"LMND":1},"content_text":"By Jonathan Weil \n\n\n     How's this for a clunker? \n\n\n     Timing the market amid the recent tariff-fueled volatility is hard even for stock pickers buying shares of the companies they know best-themselves. \n\n\n     A case in point: CarMax, the used-car dealer, which today announced quarterly earnings that missed analysts' estimates. CarMax in its earnings release said it repurchased 1.2 million shares of common stock for $98.5 million, or about $82 a share, during the three months ended Feb. 28. The stock today was trading for about $65, down about 18% on the day, and was the worst performer in the S&P 500. It is down 22% since the start of its just-reported fiscal quarter. \n\n\n     By reducing CarMax's share count, the buybacks appear to have added about a penny to CarMax's fiscal fourth-quarter earnings per share, going by the company's disclosures. It was an expensive penny. \n\n\n       This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n\n\n  (END) Dow Jones Newswires\n\n\n  April 10, 2025 13:15 ET (17:15 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"buyback","news_rank":0,"symbols":[],"gpt_button":0,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.33.2","shortVersion":"4.33.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2526117465"}