CarMax Inc.'s net earnings rose 8.9 percent to $148 million in its fiscal third quarter from the year-earlier period, led by an 8.2 percent rise in used-vehicle sales, the company reported Thursday.
The nation's largest used-car retailer's net revenue surged 11 percent to $4.11 billion in the quarter ending Nov. 30.
The company's used-vehicle sales rose 8.2 percent to 169,648 units, while wholesale-vehicle sales grew 9.1 percent to 100,332. The average retail selling price of a used vehicle rose 2.5 percent to $20,008.
In regard to tax reform in Washington, CarMax expects the substantially lower corporate tax rate to benefit its financial results and cash flow in the future, CFO Tom Reedy said on a call with investors and shareholders.
"We believe this will result in a one-time unfavorable result on our tax provision of an estimated $50 [million] to $65 million," Reedy said. "This range could be impacted by our analysis of final law and our fourth-quarter financial results."
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