CarMax Makes The Most Of Booming Used Car Market, Stock Soars

CarMax Inc. (NYSE:KMX) shares climbed on Friday after the used car giant delivered better-than-expected first-quarter earnings and revenue, driven by strong retail sales and improved margins.

The Richmond, Virginia-based used car retailer registered earnings per share of $1.38, beating the analyst consensus estimate of $1.21. Quarterly sales of $7.55 billion outpaced the analyst consensus estimate of $7.47 billion.

Retail used unit sales rose by 9.0%, while comparable store used unit sales grew by 8.1%. Wholesale unit sales also saw a modest increase of 1.2%.

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Combined retail and wholesale used vehicle unit sales were 379,727, an increase of 5.8% from the prior year’s first quarter.

Total ...