Shares of CarMax, Inc KMX dropped more than 4 percent in pre-market trading after the company reported weaker-than-expected sales for the first quarter. However, the company reported in-line earnings for the quarter.
The Richmond, Virginia-based company posted quarterly earnings of $182 million, or $0.86 per share, compared to $169.7 million, or $0.76 per share, in the year-ago period.
Its sales gained 7.1 percent to $4.01 billion. However, analysts were expecting earnings of $0.86 per share on revenue of $4.15 billion.
The average estimate among 10 Estimize users was for earnings of $0.91 per share and revenue of $4.25 billion.
Total used vehicle unit sales gained 9.3 percent, while total wholesale vehicle unit sales climbed 4.7 percent. Used unit sales in comparable stores surged 4.9 percent.
Total gross profit rose 8.4 percent to $543.8 million in the quarter.
CarMax Auto Finance income rose 15.3 percent to $109.1 million in the quarter.
During the first quarter, CarMax repurchased 1.8 million shares of common stock for $119.9 million.
"We had another great quarter, setting all-time records for quarterly sales and earnings," said Tom Folliard, president and chief executive officer. "Continued strong performances in our used, wholesale and CAF operations, along with the growth of our store base and our ongoing share repurchase program, contributed to our solid results."
CarMax shares fell 4.71 percent to $68.57 in pre-market trading.
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