WASHINGTON: CarMax Inc. KMX posted earnings per share of 63 cents in the third quarter of fiscal 2016, ended Nov 30, 2015, registering an increase of 5% from 60 cents earned a year ago. However, earnings missed the Zacks Consensus Estimate of 68 cents. The improvement in the bottom line was driven by lower shares outstanding, which offset the 1.4% decline in net income to $128.2 million.
Net sales and operating revenues in the reported quarter increased 4.1% year over year to $3.54 billion, but fell short of the Zacks Consensus Estimate of $3.62 billion. The year-over-year rise was mainly driven by increased used vehicle and wholesale vehicle sales.
Used vehicle revenues appreciated 4.1% to $2.9 billion in the quarter, aided by higher unit sales. Unit sales of used vehicles increased 3.2% to 143,673 vehicles, while the average selling price improved 0.9% to $20,094. Comparable-store used vehicle unit sales dipped 0.8% in the quarter due to lower store traffic.
New vehicle revenues decreased 22.5% to $42.3 million owing to a 21.6% decline in unit sales to 1,576 vehicles. Also, the average selling price of new vehicles dropped 1.2% to $26,720.
Wholesale vehicle revenues rose 6.7% to $513.8 million in the quarter on unit sales increase of 3.4% to 94,066 vehicles. Wholesale unit sales benefited from an improvement in store base. Average selling price of wholesale vehicles went up 2.3% to $5,243.
Other sales and revenues climbed 6.1% to $79 million. Extended protection plan (“EPP”) revenues dropped 0.1% to $61.6 million. Gross profit improved 4% to $464.3 million from $446.6 million in the year-ago quarter.
