Carmax Inc (NYSE:KMX) on Tuesday reported better-than-expected second-quarter financial results.

CarMax reported adjusted earnings of $1.16 per share, beating the analyst estimate of 73 cents. Sales rose 19.5% year over year to $7.88 billion, beating the $6.98 billion estimate.

Retail used-vehicle sales rose 13.8% to 227,391 units, while comparable-store used-vehicle sales increased 13%. Retail revenue climbed 19.7%, helped by higher sales volume and a $1,600, or 6.3%, increase in the average selling price.

“Our strong second quarter results reflect solid execution and early progress against Shift into GEAR, our four-pillar strategy to strengthen CarMax’s core business and return the company to sustained growth,” said Keith Barr, President and Chief Executive Officer. “We delivered 81% EPS growth as we strengthened our price competitiveness, increased Extended Protection Plan margins, expanded CAF’s share of Tier 2 originations, continued to enhance our digital experience, and drove material SG&A leverage. I am confident in our ability to build on this early momentum. We have a clear strategy, a solid foundation, and an exceptional team accelerating our progress to create long-term value for our shareholders.”

CarMax shares fell 0.3% to $59.06 in pre-market trading.

These analysts made changes to their price targets on CarMax following earnings announcement.

• B of A Securities analyst John Murphy maintained the stock with an Underperform rating and raised the price target from $45 to $50.
• BNP Paribas analyst Chris Bottiglieri reiterated the stock with an Underperform rating and raised the price target from $33 to $48.

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