CarMax (KMX) shares took off after the biggest U.S. used car dealer beat profit forecasts as it sold more vehicles in the wholesale market. The company also reinstated its 澳洲幸运5官方开奖结果体彩网:share repurchase program.

CarMax reported third quarter fiscal 2024 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $0.52, more than a third higher than analysts’ estimates. Revenue fell 5.5% to $6.15 billion, less than expected.

Combined retail and wholesale unit sales𒊎 rose 1.3% to 302,666. Wholesale unit sales jumped 7.7% to 127,900, and revenue increased 1.1% to $1.17 billion. The company added the wholesale unit had a “strong” gross profit of $961 per unit, in li💜ne with the year-ago period. 

However, retail unit sales were down 2.9% to 174,766, and revenue dropp☂ed 7.2% to $4.83 billion as the average retail sellinꦜg price fell about $1,300 per unit. CarMax said in its earnings release that “vehicle affordability challenges” persisted, pointing to “ongoing headwinds due to widespread inflationary pressures, higher interest rates, tightened lending standards and low consumer confidence.”

The company noted that it cut 澳洲幸运5官方开༒奖结果体彩网:selling, general, and admini🥂strative (SG&A) expenses by $560 million, a decline of 5.4%

CEO Bill Nash said CarMax was encouraged by its omni-channel investments, which have helped boost the number of retail cus♋tomers and web traffic, as well as enhance vehicle sourcing.

The company announced that it restarted the stock buyback plan it had paused in the third quarter of fiscal 2023, p🐽icking up 648,500 shares for $41.9 million. It noted that as of the end of November it had $2.41 billio♑n still available for repurchase under the existing authorization.

Shares of CarMax were up 5.1% at $78.51 just past noon ET, after moving as high as $84.20 early in the session. The stock has gained nearly 30% for the year.