* First-quarter profit $0.64/share vs est $0.58/share
* Revenue $3.31 bln vs est $3.15 bln
* Total used-car sales rise 23 pct
* Shares rise as much as 8 pct
By Rohit Tirumala Kumara
June 21 CarMax Inc, the largest used-car
retailer in the United States, reported strong quarterly results
as a better supply and an improving consumer sentiment helped it
sell more vehicles at higher prices.
Shares of CarMax, which also sells some new cars, rose as
much as 8 percent to $48.01 in early morning trading, making it
one of the top percentage gainers on the New York Stock
In the three months ended May, the company sold 137,154 used
vehicles, an increase of 22 percent compared to a year earlier.
Average selling price rose 1.3 percent to $19,540.
The supply of used cars has improved after a shortage over
the previous few quarters as customers ditch their cars in favor
of newer models.
"The strength (in results) is impressive given that the
sweet spot of returning supply is still a year away," Credit
Suisse analysts wrote in a note titled 'A quick shift to high
First-quarter revenue rose 19 percent to $3.31 billion,
above the $3.15 billion analysts had estimated.
CarMax benefited as delayed tax refunds pushed some sales
from February into March.
Sales in CarMax's wholesale business also rose 5 percent.
The business sells cars that don't meet its retail standards to
Net income rose to $146.7 million, or 64 cents per share, in
the first quarter from $120.7 million, or 52 cents per share, a
Analysts on average expected earnings of 58 cents per share,
according to Thomson Reuters I/B/E/S.
CarMax, which has over a 100 lots in the United States, has
stepped up its store growth to take advantage of an improving
It has already opened four stores in its current fiscal year
and plans to launch 13 more by May 2014.
CarMax shares were up 1.2 pct at $45.17 on the New York