Carmax Inc. (KMX) - Get Report shares were indicated sharply higher in pre-market trading Friday after the used car retailer posted stronger-than-expected fourth quarter earnings as vehicle delivery gains offset a modest decline in prices.
Carmax said earnings for the three months ending in May came in at $1.59 per share, 19.5|% higher than the same period last year and firmly ahead of the Street consensus forecast of $1.49 per share. Group revenues, Carmax said, rose 12% to $5.366 billion and again topped analysts' forecasts.
Carmax said unit sales rose 13% to 224,268 from last year, while average selling prices nudged 0.1% lower to $20,050.00 per vehicle. Wholesale vehicle prices rose 0.2% to $5,213.00.
"CarMax had an outstanding first quarter," said CEO Bill Nash. "I'm proud of our team and its commitment to delivering an exceptional experience to both our retail and wholesale customers, which drove our strong growth in sales, gross profit and earnings.
"In addition, we're pleased with the continued strong response to our omni-channel roll-out in Atlanta," he added. "In early June, we successfully launched this capability in most of our Florida markets, along with opening our first customer experience center in Atlanta."
Carmax shares were marked 2.3% higher at the start of trading following the earnings release to change hands at $85.06 each, an all-time high and a move that would extend the stock's year-to-date gain to around 38%.