2023-12-21 17:25:00 ET
Shares of CarMax (NYSE: KMX) rallied as much as 13% early Thursday, then settled to close up 5.2% after the used-vehicle retailer announced better-than-expected quarterly earnings. CarMax also resumed its share repurchase program.
On one hand, for its fiscal third quarter ended Nov. 30, Carmax's revenue declined 5.5% year over year to $6.15 billion, technically missing analysts' consensus estimates for sales of $6.3 billion. On the other hand, CarMax's net earnings more than doubled on a year-over-year basis to $82 million, or $0.52 per share, trouncing Wall Street's estimates for earnings of $0.41 per share.
Carmax has strived in recent quarters to maximize its profitability by reducing SG&A (sales, general, and administrative) expenses, improving its credit mix within the CarMax Auto Finance (CAF) division, and maintaining a strong gross profit per vehicle sold.
For further details see:
Why CarMax Stock Popped Today