CarMax (KMX) beats Q1 earnings and revenue goals, but shares dip 4% in premarket trading as investors react to tighter margins.

CarMax (KMX) will report Q1 earnings on June 17. Analysts expect EPS of 94 cents on revenue of $7.42B. Last year, it reported $7.55B in revenue.

CarMax is just in a buy zone as a key rival looks to disrupt auto sales again.