CarMax posts upbeat Q1 results on used car demand, shares rise

CarMax KMX on Friday posted stronger-than-expected revenue and profit for the first quarter, helped by resilient demand for used vehicles.

Shares of the used-car retailer rose 9.3% in premarket trading.

Uncertainty from U.S. tariffs impacted the auto industry and nudged some budget-conscious buyers towards the pre-owned vehicle market for newer models.

"We bought 336,000 vehicles from consumers and dealers, up 7.2% compared to last year's first quarter," the company said.

In April, CarMax said it was further expanding its inventory of newer pre-owned vehicles.

The Richmond, Virginia-based company sold 230,210 units of used vehicles in the first quarter, up 9% from a year ago, while sales of wholesale vehicles also improved 1.2% year-over-year.

CarMax reported a profit of $1.38 per share for the quarter ended May 31, compared with analysts' estimate of $1.16 per share, according to data compiled by LSEG.

Quarterly revenue rose 6.1% to $7.55 billion, compared with estimates of $7.51 billion.