CarMax Inc (NYSE:KMX) shares jumped 8% in early trade as the used car retailer’s fiscal first quarter earnings report impressed investors.
The company’s earnings per share increased 42.3% year-over-year to $1.38, ahead of the Wall Street consensus of $1.19.
Gross profit was up 12.8% at $893.6 million, attributed to higher unit volumes and strong unit margin performance.
Revenue was up 6.1% year-over-year at $7.55 billion, ahead of estimates of $7.54 billion
Combined retail and wholesale used vehicle unit sales were up 5.8% from the year-ago period at about 380,000.
“We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth,” CarMax CEO Bill Nash said in a statement.
“These results highlight the strength of our earnings growth model, which is underpinned by our best-in-class omnichannel experience, the diversity of our business, and our sharp focus on execution.”