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Used car dealership chain CarMax 1Q profit up

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RICHMOND, Va. (AP) — CarMax is reporting a 16 percent jump in first quarter earnings, easily beating Wall Street estimates, and shares of the used car dealership are up more than 9 percent in premarket trading.

The Richmond company reported Friday that that it earned $169.6 million, or 76 cents per share. That's up from $146.7 million, or 64 cents per share, a year ago.

Revenue grew 13 percent to $3.75 billion.

Analysts surveyed by FactSet expected earnings of 67 cents per share on revenue of $3.59 billion.

Sales at stores open at least one year rose 3.4 percent. That is a key metric because it strips out the volatility of newly opened and closed locations.

CarMax Inc. runs about 135 stores that mainly sell used cars and trucks.

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