CarMax Inc (NYSE:KMX) picked up in early trades even though profits fell in its latest quarter as investors decided the numbers weren’t as bad as feared.
Net earnings for the three months to end May 2024 dropped to $152.44 million, or $0.97 per share compared to $228.30 million, or $1.44 per share, over the same period a year ago.
Revenue for the quarter fell 7.5% to US$7.11 billion from US$7.69 billion last year.
Bill Nash, chief executive, said he was nonetheless encouraged by the trends seen in the quarter,
“We delivered strong retail, wholesale, and EPP gross profit per unit, sourced a record 35,000 vehicles from dealers, continued to actively manage SG&A, and repurchased over $100 million in shares of common stock," Nash said.
“As CAF advances to a full-spectrum credit model, we launched our first non-prime asset-backed securitization deal early in the second quarter as part of the expansion of our securitization program that will enable incremental growth in finance income."
Shares were up 4.7% at US$74.74 in early trades.