CarMax first quarter profit rose 13%, but it missed Wall Street’s target because of softening sales in April and May and offered a cautious outlook, Dow Jones reported.
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CarMax reported net income of $US39.8 million, or 37 cents a share, for the period ended May 31, up from $35.3 million, or 33 cents, earned a year ago.
Excluding a 3-cent gain for a favourable accounting adjustment, earnings for the used car retailer would have been 34 cents a share, Dow Jones noted – analysts polled by Thomson First Call were looking for earnings, on average, of 36 cents a share.
Sales for the quarter reportedly gained 19% to $1.58 billion from $1.32 billion a year earlier – same-store sales, or sales generated at stores open longer than a year, advanced 6%.
Higher petrol prices and an unusual rise in wholesale auction prices hurt results, the company told Dow Jones.
For the second quarter, CarMax forecast earnings of 29 to 34 cents a share, against analysts’ average view for 34 cents a share, the report added.
