CarMax Inc. (KMX) shares surged 5.55% in pre-market trading on Wednesday following the release of its better-than-expected first-quarter financial results.

The used auto retailer reported quarterly revenue of $8.01 billion, surpassing the consensus analyst estimate of $7.43 billion. The company also reported earnings per share of $1.31, exceeding the consensus forecast of 94 cents.

The revenue beat was driven by wholesale growth, with higher wholesale unit sales and increased average wholesale selling prices contributing to the top-line performance. Additionally, the company reaffirmed its target of achieving $200 million in SG&A exit rate savings by the end of fiscal 2027, highlighting ongoing cost management efforts.