Welcome to the Daily 5 report for Thursday, Sept. 25.
Used-car giant CarMax wasn't expected to have a gangbusters fiscal second quarter, but its results were still worse than Wall Street anticipated. Basically, all its most important results were down — and its shares plunged about 20 percent for the day.
Net income in the period fell 28 percent to $95.4 million. Revenue fell 6 percent year over year to $6.6 billion, below analysts' expectations. Same-store used-vehicle retail sales slipped 6.3 percent.
As C.J. Moore reported, CarMax said it plans to remove at least $150 million in selling, general and administrative expenses over the next 18 months.
It's too early to tell if CarMax's bearish quarter signals an overall drop in the used-car market. CEO Bill Nash said conditions are improving.
"What I'll tell you for September, month to date, is that it is stronger than the quarter and any of the months in the second quarter," he said on a call with analysts. "It's still a little soft from a year-over-year standpoint, but certainly we put ourselves in a better position with the start of this quarter, both on an inventory position as well as from a pricing standpoint."
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In other news, Toyota Motor Corp. put on quite a show in Japan demonstrating this automaker's relentless focus on the future. Toyota launched its futuristic Woven City development, showing off mobility technologies, as Hans Greimel reports.
The gambit is a pillar project of Woven by Toyota, the Japanese carmaker's software subsidiary for developing computer systems, automated driving and new modes of mobility, Greimel wrote.
Toyota and its partners showed all manner of wheeled gizmos, in stationary demos and in motion, zipping around the city's streets, our story said. They included delivery robots, three-wheeled scooters, autonomous parking assist vehicles and the carmaker's e-Palette all-electric boxcar-shaped people mover.
In Europe, worries over the impact of Jaguar Land Rover's cyberattack disruption are growing, but the company said some systems were coming back online today.
"We are now working to clear the backlog of payments to our suppliers as quickly as we can," a JLR spokesman told Reuters.
Richard Truett earlier wrote this analysis on how JLR's woes could impact its business in North America.
That's it for now. If you want to see this story in your browser, click here.
— Philip Nussel, online editor
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