CarMax, Inc. (NYSE:KMX) saw its shares in positive territory in Friday’s first hour to trade, on presenting favorable third-quarter numbers
The Richmond, Va.-based company reported Friday that net sales and operating revenues increased 4.6% to $4.30 billion, while used unit sales in comparable stores declined 1.2%. Moreover, total used unit sales rose 2.3%, and total wholesale unit sales increased 10.0%.
Net earnings increased 27.9% to $190.3 million and net earnings per diluted share increased 34.6% to $1.09.
Total gross profit increased 5.6% versus last year’s third quarter, to $569.2 million. Used vehicle gross profit rose 1.5%, reflecting the 2.3% increase in total used unit sales. Used vehicle gross profit per unit remained relatively stable at $2,133 compared with $2,148 in the prior-year period.
And give the Trump Administration its due; net earnings for the three months ended November 30, 2018 benefited from a decrease in the effective tax rate to 23.2% from 33.9% in the prior year’s third quarter, primarily reflecting the effect of the Tax Cuts and Jobs Act of 2017
CEO Bill Nash called the tidings, "a testament to the strength of our diversified business model. We are also excited to introduce our omni-channel experience in Atlanta, where consumers can now customize their car buying experience, whether they want to buy a car completely from home, in-store or, most importantly, through a seamlessly integrated combination of online and in-store experiences."
Shares acquired $1.00, or 1.8%, to $57.72
