CarMax Inc. shares $(KMX)$ jumped 5.12% premarket Wednesday, after the used car retailer beat earnings estimates for the third quarter, with profit and revenue boosted by strong demand amid shortages.
The company posted net income of $269.4 million, or $1.63 a share, for the quarter, up from $235.3 million, or $1.42 a share, in the year-earlier period. Revenue jumped to a record $8.528 billion from $5.185 billion a year ago. The FactSet consensus was for EPS of $1.45 and revenue of $7.378 billion.
The company sold 415,054 units, up 29.3% from a year ago. Retail used unit sales rose 16.9% to 227,424 vehicles, while same-store used unit sales were up 15.8%. Wholesale units rose 48.5% to 187,630 vehicles.
CarMax bought 383,215 vehicles from consumers in the quarter, a 91% increase over the year-earlier period. SG&A costs rose 33.7% to $575.9 million, due to increased staffing and sales-related compensation, spending on technology and initiatives to support increased consumer demand. Shares have gained 45% in 2021, while the S&P 500 has gained 24%.