CarMax beats estimates, used car market remains stable

CarMax Inc. (KMX) reported its fiscal first-quarter financial results this morning. The auto retailer's profit fell 2.7 percent on a 17 percent sales drop, but it still beat Wall Street expectations, sending shares soaring over 12 percent shortly after the open.

CarMax, which operates 100 used car superstores in 46 metropolitan markets and sold nearly 346,000 used vehicles in its most recent fiscal year, earned $28.7 million, or 13 cents per share, in the three months ended May 31, down from $29.6 million, or 13 cents per share, a year ago. On an adjusted basis, earnings came in at 22 cents a share, well above the 4 cents a share that analysts expected.