CarMax (KMX) Shares Up 7% On Strong Results

Shares of CarMax Inc (NYSE: KMX) are trading up more than 7% at $25.91 per share on Wednesday afternoon. The day's trading range for shares of CarMax Inc has been between $24.95 and $26.15 per share and the stock is near its 52 week high of $26.50. Analysts covering the company's stock have a consensus price target of $25.62 per share.

Earlier this morning, the Richmond, Virginia based used car dealer chain announced earnings that beat Wall Street estimates and strong revenue growth.

CarMax (KMX) reported 2nd quarter net income of $107.9 million, or 48 cents per share, which was well above the average analyst estimate of 40 cents per share. The company also reported that its revenue climbed 13% to $2.34 billion, up from $2.08 billion a year earlier.

President and chief executive officer Tom Folliard said, “We are extremely pleased to deliver record profits, with strong contributions from across our business model, despite what remains a challenging sales environment.”

Volume of 6.9 million shares is already nearly double the daily average volume of 3.5 million shares.

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