CarMax Inc (NYSE:KMX) shares moved higher after the used car retailer posted mixed earnings for the second quarter.
Its earnings per share (EPS) of $0.85 fell shy of estimates of $0.86, but marked an improvement from $0.75 in the year-ago period.
Gross profit was up 9.1% from the same period at $760.5 million.
Revenue of about $7 billion, however, beat estimates of $6.85 billion.
Combined retail and wholesale vehicle unit sales increased 2.9% from the year-ago quarter to 352,478.
Retail used vehicle unit sales were up 5.1% to 211,020, while wholesale vehicle unit sales were down 0.3% to 141,458.
Further, CarMax repurchased $106.1 million in shares during the quarter.
“We are pleased with the continued improvement of the business in the second quarter, which reflects the positive impact of our durable actions to further differentiate the value and experience we offer associates and customers, continued year-over-year price declines, and improved stability in vehicle valuations,” CarMax CEO Bill Nash said in a statement.
“We grew retail used unit sales, delivered strong margins, continued to manage SG&A, and drove double-digit earnings growth while managing through industry wide auto loan loss pressure.”
After initially falling following the release of its earnings report, shares of CarMax had gained 5.9% at $78.88 in the early afternoon on Thursday.