CarMax (KMX) reported a 13% jump in fourth-quarter earnings on Wednesday, as sales in its used-vehicle and wholesale segments climbed.
For the quarter ended Feb. 28, the car seller’s profit was $107.2 million, or 46 cents a share, up from $95 million, or 41 cents a share, a year earlier.
Revenue grew 14% to $2.83 billion, beating Wall Street’s estimate of $2.73 billion. Analysts expected per-share earnings of 46 cents.
CarMax, the largest used-vehicle seller in the U.S., has seen its revenue grow over the last three years as a result of higher demand for used cars.
In the fourth quarter, used-vehicle sales volume rose 12% while wholesale unit sales were up 7%.
Same-store unit sales grew 6%, even though the period had one less selling day compared to prior-year period. Average selling prices were up 4.3%.
Gross margin fell to 13.1% from 13.7%.
“We believe our long-term focus on developing associates, enhancing the customer experience, driving efficiencies, and building our store base continues to drive great results,” President and CEO Tom Folliard said in a statement.
CarMax also benefitted from strong performance in its finance unit, which recorded income that climbed 15% to $76 million.
Shares of CarMax were up 13 cents at $41.81 in pre-market trading. The stock is up 11% so far this year.