CarMax stock got a small boost on Wednesday following the release of its earnings report for the second quarter of 2018.
During the second quarter of the year, CarMax (NYSE:KMX) reported earnings per share of $1.24. This is an increase over the company’s earnings per share of 98 cents from the same time last year. It was also good news for CarMax stock by coming in above Wall Street’s earnings per share estimate of $1.22 for the period.
Net income reported by CarMax for the second quarter of 2018 came in at $220.89 million. This is better than the used-car retailer’s net income of $181.42 million reported in the second quarter of 2017.
CarMax points out that the increase to its net income for the second quarter of the year was due to lower tax rates than in 2017. The company says its effective tax rate was 23.7%. Its effective tax rate in the second quarter of the previous year was 37.5%. This is mostly due to the Tax Cuts and Jobs Act of 2017.
CarMax’s revenue for the second quarter of 2018 came in at $4.77 billion. This is up from the company’s revenue of $4.39 billion that was reported in the same period of the year prior. It was also a boon to CarMax stock by beating out analysts’ revenue estimate of $4.65 billion for the quarter.
CarMax notes that its comparable total used vehicle unit sales for the second quarter of the year were up 5.8% from the same time last year. It also saw its comparable store used unit sales for the quarter increase 2.1% from the second quarter of 2017.
KMX stock was up slightly as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.