reported a 25% increase in second-quarter earnings and beat analysts' expectations thanks to higher used-vehicle sales.
However, because of sluggish September sales and last week's hurricane, CarMax expects third-quarter results to fall short of Wall Street's estimates. Still, the company raised its full-year forecast.
In the second quarter ended Aug. 31, the car retailer earned $39.6 million, or 37 cents a share, up from last year's earnings of $31.7 million, or 30 cents a share. Analysts had expected 36 cents a share.
Total sales in the quarter reached $1.24 billion, compared with $1.08 billion in the year-ago period. The company reported $938.7 million in used-car revenue, from last year's $784.8 million. New-vehicle sales fell 10% to $139.6 million.
Same-store vehicle sales rose 4% in the quarter, compared with an increase of 11% last year.
The Richmond, Va., company projected third-quarter earnings of 19 cents to 21 cents a share. Analysts expect 22 cents a share. For fiscal 2004, CarMax now expects a profit of $1.11 to $1.16 a share, while analysts' average forecast is $1.15 a share. Previously, the company had predicted $1 to $1.10 a share. Same-store sales are still expected in the 5% to 9% range.
Shares of CarMax were falling $1.06, or 3%, to $34.87.