Text size
Used car seller CarMax benefited from a one-off gain due to a legal settlement.
Photograph by Yana Paskova/Getty Images
CarMax, the used-car seller, topped analyst expectations on both profit and sales for the first quarter, driving the stock higher Friday.
It declared earnings of $1.44 per share which were boosted by a one-off gain from a legal settlement. The EPS, with that benefit removed, was $1.16 per share for the May ended quarter. Wall Street analysts tracked by FactSet were looking for 79 cents per share.
CarMax (ticker: KMX) sales were $7.69 billion, also beating estimates of $7.49 billion. Comparable-store used-unit sales declined 11.4% in the period, an improvement from declines of 22.4% in the third quarter and 14.1% in the fourth quarter.
The stock increased almost 8% to $84.50 in premarket trading Friday.
Write to Karishma Vanjani at [email protected].
Source: https://www.barrons.com/articles/carmax-stock-price-earnings-ff3b597e?siteid=yhoof2&yptr=yahoo