By market open, shares had spiked 15% to $52.09.
In its first quarter, the company earned 76 cents a share and generated sales 13.3% higher year over year to $3.75 billion. Analysts surveyed by Thomson Reuters had forecast earnings of 67 cents a share and revenue of $3.58 billion.
TheStreet Ratings team rates CARMAX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARMAX INC (KMX) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: KMX Ratings Report