Shares of CarMax Inc.
KMX,
jumped 8.3% toward a nine-month high in premarket trading Friday, after the used car seller reported a big fiscal first-quarter profit beat as used, consumer and dealer buys all improved. Net income for the quarter to May 31 fell to $158.6 million, or $1.44 a share, from $252.3 million, or $1.56 a share, in the year-ago period. The latest results include a benefit of 28 cents a share related to a legal settlement. Excluding that benefit, EPS was $1.16, well above the FactSet consensus of 79 cents. Total sales dropped 17.4% to $7.69 billion, but was above the FactSet consensus $7.50 billion, as used vehicle sales fell 14.4% to $6.00 billion while wholesale vehicle sales declined 28.5% to $1.51 billion. The company said it believes inflationary pressures, higher interest rates and tighter lending standards led to affordability challenges that continue to weigh on sales. Average selling prices for used vehicles fell 5.5% to $27,258. The stock has run up 38.1% over the past three months through Thursday, while the S&P 500
SPX,
has gained 11.0%.
