CarMax Inc., (NYSE:KMX), announced a 44% increase in 4th quarter profit as used vehicles continue to be on everyone's radar list. The used car dealership reported earnings that beat forecasts by analysts.
The stock opened at $71.98 and made a quick pop to a 52 week and lifetime high of $74.50 by mid morning.
CarMax has grown sales and earnings in double digits nine out of the past 10 quarters, spurred by great growth in the auto industry.
Revenue increased 14% to $3.51 billion, in line with expectations on Wall Street. Used unit sales in comparable stores increased 7% for the quarter and 4.4% for the full fiscal year.
The company opened 13 new stores in fiscal year 2015 to a total store count of 144 as of February 28th. The average age of cars on U.S. roads is 11.4 years, according to IHS Automotive reports. With so many people holding onto their cars for longer periods of time due to very high new car prices, this positions CarMax to capitalize on the high demand for used cars in foreseeable future.
In a statement, CEO Tom Folliard said the "continued strong performance of our used, wholesale and CAF operations, along with the growth of our store base and our ongoing share repurchase program, contributed to our record earnings per share" in fiscal 2015.
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