After whiffing on earnings Wednesday, CarMax shares were down about 3% in midday trading after CFO Thomas Reedy said on an earnings call with analysts that declining credit quality has hurt showroom turnout.
"One thing we do believe is that there is some correlation between the quality of offer that we're providing in the stores and the application volume because there's word-of-mouth in the customer space," he said. "The quality of offer is currently down year over year and has declined over the last several quarters," he added. Overall, CarMax's non-adjusted earnings per share of $0.84 fell short of consensus estimates by nearly 5% and sales of $4 billion fell short by about 3%.
Meanwhile, Harley Davidson (HOG) shares were swerving in midday trading after a report by TheFly, which cited renewed rumors of a potential private-equity takeover bid, was debunked by CNBC in its Halftime report, which cited conflicting chatter that no bidders are coming to the plate. Shares of Harley were also buoyed Wednesday after a Road King Classic report that the iconic motorcycle manufacturer's latest Milwaukee-Eight engine could exceed initial performance expectations.
Harley shares were still up about 4% in afternoon trading, after falling about 3% from their midday peek. This isn't the first time a Harley takeover has been speculated, sending shares roaring ahead, with TheStreet's Brian Sozzi citing in July that PE giant KKR (KKR) could be stepping up.
Shares of Netflix (NFLX) were also falling about 3% in afternoon trading after an underwhelming presentation at a Goldman Sachs conference in which CFO David Wells hinted that no significant audience growth spikes are on the media-streaming giant's horizon.
"We can build audience over time and grow that to a point where we don't necessarily have to have home runs," Wells said. "We've described it in the past that singles and doubles are fine." (Netflix shares were also pressured Wednesday by an M Science report that noted the company is likely to miss its third-quarter subscriber growth estimates.
Overall, U.S. markets were up slightly, with the S&P 500 and Dow Jones industrials each up about 0.2% as crude oil rallied about 2.5% to $45.17 a barrel, based on U.S. benchmark West Texas Intermediate.