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VOL. 37 | NO. 25 | Friday, June 21, 2013
Used car dealership chain CarMax 1Q profit up
RICHMOND, Va. (AP) — CarMax says higher sales drove the used car dealership chain's first-quarter profit up more than 21 percent.
The results beat Wall Street expectations. Its shares rose almost 5 percent in premarket trading.
The Richmond, Va.-based company said Friday it earned $146.7 million, or 64 cents per share, for the period ended May 31. That's up from $120.7 million, or 52 cents per share, a year ago.
Revenue grew 19 percent to $3.31 billion.
Wall Street analysts surveyed by FactSet expected earnings of 58 cents per share on revenue of $3.17 billion.
Sales at stores open at least one year rose 17 percent. The figure is a key metric because it strips out the impact of newly opened and closed locations.
CarMax Inc. runs about 120 stores that mainly sell used cars and trucks.