Carmax's reported earnings and revenue during the first quarter rose, which helps the company's stock ride, all backed by increased website traffic.
Estimates: CarMax earnings to rise 12% to $1.49 as sales grow 9% to $5.22 billion, according to Zacks Investment Research.
Results: CarMax earnings came in at $1.59 per share on revenue of $5.37 billion. Used unit sales in comparable stores increased 9.5%, reflecting strong conversion and solid growth in web traffic as the company rolls out its omni-channel shopping to more locations.
Total used unit sales rose 13%, and total wholesale unit sales increased 6.6%. The average selling price for used vehicles slipped 0.1% to $20,050.
Auto finance income edged up 0.3% to $116.0 million, while the provision for loan losses increased to $38.2 million from $30.9 million in the prior-year quarter.
Stock: Shares jumped 3.1% to 85.58 on the stock market today, now extended beyond buy range after clearing a 79.71 handle entry earlier this month. CarMax stock hit a record 88.64 intraday.
Among online car retail rivals, Carvana rose 0.2%, while Cars.com fell 1.15% and TrueCar dipped 0.2%.
While the relative strength line for CarMax stock has moved higher since its last report in March, that follows a long slide.
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