CarMax (NYSE:KMX) shares are trading around 6% higher premarket on the back of its first quarter earnings and revenue beat.
The used car retailer reported Q1 EPS of $1.44, compared to the analyst consensus estimate of $0.79. However, the quarter included a $0.28 benefit in connection with a legal settlement.
Revenue came in at $7.7 billion, down over 17% YoY but above the consensus estimate of $7.49 billion.
KMX's retail used unit sales declined 9.6%, while comparable store used unit sales declined 11.4% from the prior year's first quarter. Wholesale units declined by 13.6%.
"Our deliberate actions are driving improved trends in the business, despite the challenging macro environment," said Bill Nash, CarMax president and chief executive officer.
"Our unit performance in used, wholesale and consumer, and dealer buys all improved sequentially from the year-over-year trends in the second half of fiscal year 2023. We also continued to deliver strong retail and wholesale gross profit per unit along with SG&A reductions."