As we noted yesterday in our CarMax earnings preview, analysts were expecting to see the company post fourth quarter earnings this morning of $0.38 per share. Earnings were higher than expected, at $).39 per share, marking the 9th straight quarter of analyst beating earnings for the company.

During the same period last year CarMax had earnings of $0.33 per share.

Revenues were also above estimates at $2.25 billion, versus analyst estimates for $21.8 billion.

Despite topping earnings and revenues estimates, the stock is trading sharply lower in today’s action. The reason the stock is selling off was a drop in gross margin during the quarter to 14.2% from a previous 14.5%.

Same store sales were up 12% during the period.

The stock is trading down 7.3% on the day to $32.06, down $2.53.

GameStop had a very respectable 10% jump in sales, spurred by strong demand for hit titles such as Activision (ATVI)’s Call of Duty Black Ops.

Going into this morning’s earnings report, analysts had been expecting to see GameStop post earnings of $1.55 per share, but actual earnings came in slightly higher at $1.56.

During the same period last year the company had earnings of $1.29.

The majority of the company’s revenues comes from sales of new games, and in this area it saw a sales increase of 2.1% during the quarter. Used game sales gained more ground, rising 3.7% in the quarter. The fastest growing area of GameStop’s business was its sale of hardware devices, which were up 5.9% in the quarter.

The stock is trading up 3.2% this morning to $21.77, up $0.66.

Going into this afternoon’s earnings report, analysts had been expecting the company to post earnings of 41 cents per share. The company’s actual earnings came in higher, with a reported 47 cents per share.

For the same period last year the company had 40 cents in earnings.

Late day traders are pushing shares up 3% in after hours trading.