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CarMax posts 4Q profit boost as used car purchases increase, beating Wall Street estimates

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NEW YORK — CarMax Inc. on Thursday reported that its fiscal fourth-quarter profit jumped, topping Wall Street expectations, as more consumers purchased used vehicles.

The Richmond-Virginia-based company earned $143.1 million, or 67 cents per share, up 44.3 percent versus a year ago. Earnings, adjusted for non-recurring costs, were 69 cents per share. Meanwhile, revenue rose 14.2 percent to $3.51 billion.

The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 60 cents per share and eight analysts surveyed by Zacks expected $3.49 billion in revenue.

For the year, the company reported profit of $597.4 million, or $2.73 per share. Revenue was reported as $14.27 billion.

The company said same-store-sales, which are a key measure for the health of a business, rose 7 percent during the quarter. For the calendar year, the company estimated that it increased its market share by 5 percent for used cars up to 10 years old.

CarMax plans to open 14 new stores within the next fiscal year.

Its shares rose $2.83, or 4.1 percent, to $71.22 in premarket trading about 30 minutes before the market open.

CarMax shares have climbed nearly 3 percent since the beginning of the year, while the Standard & Poor's 500 index has stayed nearly flat. The stock has increased 44 percent in the last 12 months.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KMX at http://www.zacks.com/ap/KMX

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Keywords: CarMax, Earnings Report

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