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NEW YORK — CarMax Inc. said Tuesday its fiscal third-quarter earnings rose 10% on improved sales.
But it wasn't enough to keep up the recent momentum in the stock, which has been setting all-time highs since the used-vehicle retailer reported strong second-quarter results in September, reported The Wall Street Journal.
Shares of CarMax were down 7% at $33.40 in Tuesday afternoon trading on the New York Stock Exchange.
CarMax's results have been driven by its strategy of reinventing the concept of used-care sales, with no-haggle pricing and other customer-friendly draws. Meanwhile, the used-car market held up relatively well during the recession, especially compared to the new-car market, which fell sharply.
For the quarter ended Nov. 30, CarMax reported a profit of $82.4 million, or 36 cents a share, up from $74.6 million, or 33 cents, a year earlier. The year-earlier quarter included nine cents a share of favorable adjustments related to the company's finance arm. Analysts polled by Thomson Reuters had forecast earnings of 34 cents.
Revenue jumped 23% to $2.12 billion, ahead of the analysts' expectations of $1.97 billion. Same-store used-car sales jumped 16% after an 8% gain the year earlier.
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