CarMax Q1 Results Top View

(RTTNews) - Used vehicles retailer CarMax, Inc. (KMX) Friday said first-quarter profit increased from the prior year, supported by higher revenues amid growth in unit sales. Both earnings and revenues topped Wall Street estimates. The stock added over 14 percent in pre-market trading.

Tom Folliard, president and chief executive officer, said, "We had another great quarter, hitting an all-time record level of quarterly sales and earnings. The improvement was broad-based, with contributions from our retail and wholesale operations, as well as from CAF."

Net earnings advanced to $169.65 million or $0.76 per share from $146.65 million or $0.64 per share in the prior-year quarter. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

The firm clocked net sales and operating revenues of $3.75 billion in the quarter, up 13.3 percent from $3.31 billion a year ago. Analysts' revenue consensus was $3.59 billion for the quarter.

Used vehicle sales climbed 13.3 percent to $3.06 billion and New vehicle sales were up over 33 percent at $69.8 million. Wholesale vehicle sales improved more than 11 percent to $545.2 million.

Total used vehicle unit sales went up 9.8 percent and comparable-store used unit sales grew 3.4 percent driven by improved customer traffic. This improvement was on top of growth of 22.1 percent in total used units and 16.7 percent in comparable-store used units last year.

Wholesale vehicle unit sales climbed 9.9 percent, benefiting from higher appraisal traffic and a stronger wholesale vehicle buy rate, as well as the addition of new stores.

Average selling prices were up 3.2 percent for Used vehicles and up 1.2 percent for Wholesale vehicles.

During the first quarter of fiscal 2015, the company opened four stores, including three stores in new markets. Subsequent to the end of the quarter, the firm opened its first store in the Madison, Wisconsin market.

The company also repurchased 3.8 million shares of common stock for $174.1 million in the quarter.

KMX, which closed up 0.7 percent on Thursday at $45.28, added 14.55 percent in pre-market activity.