(CTN News) – The shares of CarMax, Inc (NYSE:KMX) jumped by 7% in pre-market trading on Friday after the company announced that its revenue in the first quarter of fiscal 2024 fell 17% from the same quarter last year to $7.69 billion, surpassing the Refinitiv estimate of $7.53 billion.
While the company’s adjusted profit for the quarter came in at $1.16 per share, going hand in hand with expectations of $0.79 per share,
As the company implemented a number of cost-cutting measures to counteract a decline in demand for used vehicles during the period.
As a result of the sequential improvement in our unit performance in used, wholesale, and consumer, as well as dealer purchases in the second half of fiscal year 2023, CarMax CEO Bill Nash said in a statement that the company’s overall performance has improved year-over-year.
During the quarter, CarMax’s retail used unit sales declined by 9.6% compared to last year, while comparable store used unit sales fell by 11.4% compared to last year and wholesale units dropped by 13.6% compared to last year.
During the period ended May 31, 2023, the company ended the period with $264.3 million in cash and cash equivalents on hand.
During the past year, CarMax shares have surged more than 29% year-to-date, trading near a nine-month high as they are now near the top of the year.
Is CarMax a good brand?