Shares of used car retailer CarMax Inc. (KMX) jumped 5.8% in premarket trade Friday, after the company blew past earnings estimates for its fiscal first quarter. Richmond, Virginia-based CarMax said it had net income of $436.8 million, or $2.63 a share, in the quarter to May 31, up from $4.978 million, or 3 cents a share, in the year-earlier period. Revenue rose to $7.698 billion from $3.229 billion a year ago. The FactSet consensus was for EPS of $1.63 and revenue of $6.183 billion. The company sold 452,188 units through its retail and wholesale channels combined, up 128% from a year ago. Sales were driven by "significant demand" for used cars from consumers, supported by federal stimulus checks, which were sold through the company's omnichannel network. "We believe CarMax became the largest online buyer of used vehicles from consumers as a result of our nationwide online instant appraisal offerings, with approximately 163,000 vehicles bought in the quarter," the company said in its earnings release. CarMax is targeting $33 billion in revenue and 2 million units sold per year by fiscal 2026. The company is also aiming to expand market share of the national used car market of cars zero to 10 years old to more than 6% by calendar 2025. Shares have gained 26% in the year to date, while the S&P 500 has gained 13.6%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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