CarMax 2Q results top Street, used car sales rise

NEW YORK (AP) — CarMax’s fiscal second-quarter net income rose 26 percent, as the chain of used car dealerships continued to be bolstered by higher sales.

The results topped analysts’ estimates, and CarMax stock rose in Tuesday premarket trading.

The Richmond, Va.-based chain, which operates a dealership in West Carrollton near the Dayton Mall, earned $140.3 million, or 62 cents per share, for the three months ended Aug. 31. That compares with $111.6 million, or 48 cents per share, in the 2012 second quarter.

Analysts, on average, expected earnings of 57 cents per share, according to a FactSet survey.

Shares of CarMax climbed $2.34, or 4.7 percent, to $52.35 before the market open.

Revenue increased 18 percent to $3.25 billion from $2.76 billion. Wall Street expected revenue of $3.17 billion.

Sales of used cars climbed more than 20 percent. Wholesale sales rose nearly 9 percent on an increase in the appraisal buy rate and more stores being open. New car sales, which make up a smaller part of CarMax’s business, fell 2 percent. Other sales and revenue, which includes fees it receives from third-party lenders its customers use, increased 5 percent.