CarMax profit up on higher used car sales

2009 Mercedes-Benz E-Class
AP

(AP) RICHMOND, Va. - Used car dealership chain CarMax (KMX) says its fourth-quarter profit rose 7 percent as improved customer financing helped boost sales.

The Richmond, Virginia-based company posted net income of $95 million, or 41 cents per share, for the period ended Feb. 29. That's up from $88.8 million, or 39 cents per share, a year ago.

Revenue grew 10 percent to $2.48 billion on strong sales of cars sold at wholesale auctions and higher prices.

Sales at stores open at least one year increased 4 percent. Wholesale vehicle unit sales increased 13 percent and used vehicle unit sales grew 6 percent.

Analysts polled by FactSet expected earnings of 40 cents a shares on sales of $2.42 billion.

CarMax Inc. runs more than 105 stores that mainly sell used cars and trucks.