Used vehicles retailer CarMax, Inc. (KMX) Tuesday said profit for the second quarter increased from the prior year, amid higher revenues. However, comparable store used unit sales advanced only marginally and the results failed to please investors, sending the stock down by over 7 percent in pre-market trading.
Net earnings climbed to $154.52 million from $140.27 million reported last year. Earnings per share advanced to $0.70 from $0.62.
The latest results included a $0.06 benefit in connection with the receipt of settlement proceeds in a previously disclosed class action lawsuit.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales and operating revenues increased to $3.599 billion from $3.246 billion in the prior year. Analysts expected revenues of $3.57 billion.
Used vehicle sales increased 10.6 percent to $2.92 billion, and unit sales advanced 6.3 percent to 143,325.
Comparable store used unit sales advanced 0.2 percent, compared to a 15.9 percent growth last year. The company noted that sales were tempered by the effect of a calendar shift, as the firm had one fewer Saturday this quarter compared with last year's second quarter, which is estimated to have adversely affected comparable store used unit sales growth by around 1 percent.
Wholesale vehicle sales increased 11.7 percent to $530.27 million, and unit sales rose 7.4 percent benefiting from a stronger wholesale vehicle buy rate and the addition of new stores.
New vehicle sales were $69.94 million, up 16.6 percent from last year, amid an 18 percent increase in unit sales.
Average selling prices grew 4.1 percent for Used vehicles and Wholesale vehicles, while it slid 1.2 percent for New vehicles.
The stock, which closed down 1.4 percent at $52.81 on Monday, dropped 7.1 percent in pre-market activity.
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