CarMax Earnings Zoom as Sales Increase

CarMax (KMX) reported Wednesday that profits rose during its fiscal first-quarter on healthy increases in vehicle sales. In the three months ending May 31, CarMax said it earned $101.1 million, or 44 cents a share, compared to $28.7 million, or 13 cents a share, a year ago.

Excluding a benefit related to lower-than-expected loan losses, the Richmond, Va.-based company said net income totaled 41 cents a share, beating analyst estimates of 33 cents a share.

Net sales and operating revenues rose 23% to $2.26 billion up from $1.83 billion in the fiscal first quarter of last year. The nation's largest seller of used cars said comparable-store used unit sales increased 9% for the quarter, while total used unit sales also rose 9% in the first quarter.

Separately, Standard & Poor's said CarMax will replace XTO Energy (XTO) in the S&P 500 stock index ($INX) after markets close Friday.