RICHMOND, Va. (AP) — CarMax is reporting a 16 percent jump in first quarter earnings, easily beating Wall Street estimates, and shares of the used car dealership are up more than 9 percent in premarket trading.
The Richmond company reported Friday that that it earned $169.6 million, or 76 cents per share. That’s up from $146.7 million, or 64 cents per share, a year ago.
Revenue grew 13 percent to $3.75 billion.
Analysts surveyed by FactSet expected earnings of 67 cents per share on revenue of $3.59 billion.
Sales at stores open at least one year rose 3.4 percent. That is a key metric because it strips out the volatility of newly opened and closed locations.
CarMax Inc. runs about 135 stores that mainly sell used cars and trucks.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.