CarMax's Q4 Profit on Used Vehicles Drives Stock Higher

CarMax reported adjusted profit of 44 cents a share in the fiscal fourth quarter, beating analysts' estimates, as the auto retailer squeezed more profit from each vehicle despite a sales drop and softening used-car prices. Gross profit per retail used unit came to $2,277 in the period ended Feb. 28, up $82 from a year ago. The average retail selling price of a used car fell 9.3% from a year ago, or about $2,700, CarMax said. The company reaffirmed its long-term financial targets, including selling as many as 2.4 million vehicles through retail and wholesale channels by fiscal 2026.