CarMax Posts Profit
CarMax Inc., the largest used-vehicle seller in the U.S., said its fiscal second-quarter profit rose 4.8 percent despite 2009 gains on increased sales and prices, The Wall Street Journal reported.
The Richmond, Va.-based company has seen results improve sharply this year amid rebounding sales. The used-car business held up relatively well during the economic downturn as customers avoided more-expensive new models.
For the quarter ended Aug. 31, CarMax posted a profit of $107.9 million, or 48 cents a share, up from $103 million, or 46 cents a share, a year earlier, which included 10 cents of gains.
Revenue jumped 13 percent to $2.34 billion from $2.08 billion a year ago. Same-store used-vehicle sales increased 4 percent.
Analysts polled by Thomson Reuters most recently expected earnings of 40 cents on $2.27 billion in revenue.
Gross margin narrowed to 14.9 percent from 15.1 percent amid higher costs even as average selling prices rose 5.2 percent and 0.2 percent, respectively, for used and new vehicles.
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