CarMax Profit Rises 15%; Shares Jump

CarMax, the nation's largest retailer of used cars, posted a 15 percent rise in quarterly profit Wednesday, helped by increased traffic in its stores and on its Web site.

CarMax earned $65.4 million, or 30 cents per share, in the fiscal first quarter ended May 31, up from $56.8 million, or 27 cents per share, a year earlier.

Analysts were expecting earnings of 30 cents per share, according to Reuters Estimates.

Revenue increased 14 percent to $2.15 billion.

"Comparable-store used (vehicle) sales growth of 6 percent kicked off another good first quarter and what we are confident will be another year of growth for CarMax," Tom Folliard, president and chief executive, said in a statement.

The company's shares were up $2.55, or 11 percent, to $25.74 in morning trade on the New York Stock Exchange.

Wholesale vehicle sales increased 7 percent in the first quarter, and the average gross profit per vehicle on retail sales was slightly higher than a year ago, the company said.

CarMax said it continued to gain share in the late-model used vehicle market.

The company reiterated that it expects comparable-store used unit sales growth of 3 percent to 9 percent for the full year, and earnings of $1.03 to $1.14 per share.

Wall Street analysts expect the company to earn $1.07 per share for the full year, according to Reuters Estimates.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video