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CarMax reports quarterly earnings and revenue growth as used car sales rise
Car dealership company CarMax Inc. (NYSE:KMX) posted an 8.2% increase in quarterly earnings, driven by sales of used vehicles.
Net earnings in the fourth quarter ended 28 February 2017 rose to US$152.6mln from US$141.0mln the same period a year earlier.
Net sales and operating revenues climbed 9.3% to US$4.0bn from US$3.7bn, supported by a 13.4% growth in used car sales.
The comparable store used unit sales rose 8.7% as store traffic grew. The company opened four stores during the quarter and 15 across the year. It plans to open another 15 stores in fiscal 2018 and 13 to 16 in 2019.
Used vehicle sales to customers financed by CarMax’s third party providers, however, fell 9.4% due to tightened lending.
Sales in the wholesale vehicle unit fell 1.2%, reflecting a reduction in appraisal traffic. The group suffered a particular shortage of wholesale vehicles aged between seven to nine years old.
Other sales and revenues increased 19.2%, boosted by improvements in extended protection plan revenues and net third-party finance fees.
Shares fell 2.68% to US$55.20 in early US trading.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/176103/carmax-reports-quarterly-earnings-and-revenue-growth-as-used-car-sales-rise-176103.html
