The country's largest used car retailer reported quarterly results that beat Street forecasts. Jeanne Yurman reports.
Low gas prices and low interest rates helped to drive a solid increase in store traffic and used car sales for CarMax in its most recent quarter. The nation's biggest used car retailer beat the Street on both, the top and bottom line. Earnings were a nickel above forecasts at $0.65 a share and revenues came in slightly north of $3.5 billion. In a press release, CEO Tom Folliard commented on what marks the end of the company's fiscal year. "In fiscal 2015, 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." Driving CarMax's growth is its strategy to aggressively add new stores. In keeping with that, it says it will open 14 new locations in the next fiscal year. Also, to grow its business, CarMax has been expanding its in-house lending arm. Loan growth was up nearly 12 percent in the last quarter. According to CarMax's data, the Richmond, Virginia, company says such efforts have helped it to carve out an extra five percent of market share in the used car business in the last year. CarMax's shares are up 40 percent in the past year. And they're climbing even higher in the premarket suggesting that investors at first blush like this report.