CarMax profit up 10% as used car sales rise
Show Caption
Hide Caption
CarMax sales soar on renewed interests in used cars
Auto dealer CarMax benefited greatly from America's renewed interests in second-hand cars, but the growth is not as fast as some had hoped.
Newslook
CarMax's (KMX) second quarter income rose 10.2% as all main business lines, including selling used cars at its retail stores, registered double-digit growth from a year ago.
Its net income totaled $154.5 million, or 70 cents a share. Analysts who were polled by Thomson Reuters estimated 67 cents.
Sales were 11% higher to $3.6 billion.
Used car sales, its largest business, grew 10.6% to 2.9 billion. Wholesale car sales totaled $530.3 million, up 11.7%. But used car unit sales at comparable stores were relatively flat, up 0.2% from a year ago.
Shares of the Richmond, Va.-based company fell 9% to $48.01 in late morning trading.