CarMax earnings beat estimates

Locally based firm: CarMax Inc.

Automotive retailer CarMax Inc. said its fiscal second-quarter profit surged on higher sales and a one-time gain related to its auto financing business. The results topped Wall Street estimates.

The Goochland County-based chain earned $103 million, or 46 cents per share, for the three months ended Aug. 31, compared with $14 million, or 6 cents, a year ago.

The results included a net gain of 10 cents per share related to its financing division.

Sales rose 13 percent to $2.08 billion from $1.84 billion in the same period last year. Sales at stores open at least a year rose 8 percent during the quarter.

Analysts surveyed by Thomson Reuters, on average, expected a profit of 18 cents per share on $1.77 billion in revenue.

Used-vehicle sales rose 9.6 percent, the company said. The average selling price of used vehicles increased 5.6 percent, while gross profit per vehicle rose 13.4 percent to $2,120.

The company's auto financing arm reported income of $72.1 million, compared with a loss of $7.1 million in the year-ago period. The profit was due in part to an increase in the value of bonds the company holds.

CarMax shares rose $1.87, or 9.7 percent, to close at $21.20 yesterday after rising to a 52-week high of $21.46. -- The Associated Press