CarMax (NYSE:KMX) stock was on the rise Friday following the release of its earnings report for its fiscal first quarter of 2018.
CarMax’s earnings report for its fiscal first quarter of the year includes earnings per share of $1.33. This is better than its earnings per share of $1.13 from the same time last year. It was also good news for KMX stock by beating out Wall Street’s earnings per share estimate of $1.24 for the quarter.
During its fiscal first quarter of 2018, CarMax reported net income of $238.57 million. This is up from the used-car retailer’s net income of $211.70 million that was reported in its fiscal first quarter of 2017.
CarMax points out that the increase to its net income and earnings per share for the quarter was partially due to a lower tax rate. The company says its tax rate was down from 37.4% to 25.3% thanks to the Tax Cuts and Jobs Act of 2017.
CarMax also reported revenue of $4.79 billion for its fiscal first quarter of the year. The company’s revenue from the same period of the year prior was $4.54 billion. Analysts were looking for the company to report revenue of $4.61 billion for the quarter.
The majority of CarMax’s revenue comes from its used car sales. The company notes that used car sales revenue in its fiscal first quarter of 2018 came in at $4.02 billion. This is an increase over its used car sales revenue of $3.84 billion from its fiscal first quarter of the previous year.
KMX stock was up 12% as of noon Friday and is up 9% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
