* Fourth-quarter profit $0.46 per share, in line with
* Revenue $2.83 bln vs est $2.73 bln
* Comparable used-car sales rise 6 pct
April 10 CarMax Inc, the largest
retailer of used cars in the United States, reported a 13
percent higher fourth-quarter profit, but comparable used-car
sales grew at a slower pace than the previous quarter.
Comparable used-car sales grew 6 percent, down from 12
percent in the third quarter.
Growth in used-car sales may have fallen in part due to a
delay in tax refunds, which could have pushed some sales from
February into March, William Blair analyst Sharon Zackfia said
in a preview note dated March 27.
CarMax typically sees a boost in sales in February and
March, coinciding with the tax refund season as subprime
borrowers depend on the refunds for their purchases.
The company's third quarter likely marked the last big
year-over-year increase in subprime sales, RBC Capital Markets
analyst Scot Ciccarelli said in a preview note.
Net income rose to $107.2 million, or 46 cents per share, in
the quarter ended Feb. 28, from $95 million, or 41 cents per
share, a year earlier. Revenue rose to $2.83 billion from $2.48
Analysts on average expected a profit of 46 cents per share
on revenue of $2.73 billion, according to Thomson Reuters
Total used cars sold rose 12 percent in the quarter, while
the number of wholesale vehicles sold increased 7 percent.
CarMax, which specializes in cars that are one to six years
old, operates 119 used-car superstores in 59 markets. The
company also runs wholesale vehicle auction and auto financing
Shares of the company were down marginally before the bell.
They closed at $41.68 on the New York Stock Exchange on Tuesday.