CarMax (NYSE:KMX) reported its latest quarterly earnings results on Friday, amassing earnings that topped expectations, while revenue missed what analysts predicted, yet KMX shares were soaring throughout the course of the day.
The Richmond, Va.-based business announced that for its fourth quarter of the last fiscal year, it amassed a profit of $192.6 million, or $1.13 per share. The figure was stronger than what Wall Street called for as the average estimate of seven analysts surveyed by Zacks Investment Research called for a profit of $1.04 per share.
CarMax added that its revenue for the period came in at $4.32 billion, which was also below what Wall Street predicted. Four analysts surveyed by Zacks called for the business to rake in revenue of $4.39 billion.
For the fiscal year, the company raked in net earnings of $842.4 million, or $4.79 per share, marking an increase from its year-ago total of $664 million, or $3.60 per share in the same quarter of its previous fiscal year. Analysts predicted CarMax would bring in full-year earnings of $4.70 per share.
Meanwhile, revenue tallied up to $18.2 billion, which was up from $17.1 billion in the same period a year ago. The company added that its previous-year quarterly and annual numbers were impacted negatively by the effect of tax cuts related to the changes in the U.S. tax code two years ago.
KMX stock is up about 10.4% on Friday