CarMax Q4 Profit Beats Estimates, Shares Surge

Shares of CarMax Inc. KMX jumped more than 3% in pre-market trading after the company reported stronger-than-expected earnings for the fourth quarter. The Richmond, Virginia-based company posted quarterly earnings of $143.1 million, or $0.67 per share, compared to $99.2 million, or $0.44 per share, in the year-earlier period. Its total sales and operating revenue climbed 14.2% to $3.51 billion in the latest quarter. However, analysts were expecting earnings of $0.60 per share on revenue of $3.50 billion. Total gross profit jumped 23.9% to $475.8 million. Selling, general and administrative expenses rose 10.9% to $330.0 million. CarMax reported that used vehicles sales rose 12.4% in the quarter, while same-store used-car sales climbed 7%. Total wholesale unit sales jumped 12.3% in the quarter. Total income in the company's auto finance unit jumped 11.8% to $90.4 million. During the quarter, the company repurchased 3.4 million shares of common stock for $210.6 million. "We had another great year, achieving several new milestones," said Tom Folliard, president and chief executive officer. "Since opening our first store in 1993, we've now retailed well over 5 million used cars and 3 million wholesale cars, which is a testament to the strength of our brand." The average estimate among 13 Estimize users was for earnings of $0.66 per share and revenue of $3.69 billion. CarMax shares surged 3.38% to $70.70 in pre-market trading.