CarMax Stock Surges as Lower Prices Boost Sales at Used Car Giant | Global News Avenue

Che Max (KmixThe largest U.S. used car retailer reported its first quarterly sales increase in two years on Thursday, as falling prices attracted buyers and sent its shares sharply higher.

CarMax’s third-quarter revenue increased 1.2% year-on-year to $6.22 billion. Earnings per share (EPS) $0.81. Both are above visible alpha estimates.

Retail unit sales increased 5.4% to 184,243 units, and same-store sales increased 4.3%. Retail unit revenue rose 1.2% to $4.89 billion as a $1,100 drop in average selling prices boosted demand.

Wholesale vehicle sales increased 6.3% to 136,013 units, and wholesale revenue increased 0.3% to $1.17 billion. This was also helped by lower prices, with the average selling price dropping by $500.

CarMax also purchased 270,000 vehicles from consumers and dealers, a 7.9% increase from a year ago.

CEO says performance benefited from ‘more stable environment’

Chief Executive Officer (CEO) Bill Nash said the results were due to a “more stable vehicle valuation environment.”

CarMax shares recently rose more than 4% to $84.77. They are up about 10% so far this year.