CarMax, Inc (NYSE:KMX) shares jumped 7% in pre-market trading on Friday after the used-car seller reported first quarter fiscal 2024 revenue that fell 17% year over year to $7.69 billion but surpassed the Refinitiv estimate of $7.53 billion.
Its adjusted profit for the period, meanwhile, came in at $1.16 per share, handily exceeding expectations of $0.79 per share, as the company implemented cost-cutting measures to counter falling demand for used cars.
“Our unit performance in used, wholesale and consumer and dealer buys all improved sequentially from the year-over-year trends in the second half of fiscal year 2023,” CarMax CEO Bill Nash said in a statement.
CarMax's retail used unit sales declined 9.6% during the quarter, while comparable store used unit sales fell 11.4% from a year ago, and wholesale units slid 13.6%.
The company ended the period with $264.3 million in cash and cash equivalents as of May 31, 2023.
Shares of CarMax have surged more than 29% year to date and are now trading near a nine-month high.
Contact Sean at sean@proactiveinvestors.com