CarMax Wants to Change the Way People Buy Cars
For many people, buying a car is a harrowing experience; fears of getting tricked by overzealous salespeople make many would-be shoppers try to avoid vehicle purchases entirely. A host of different business models have aimed to improve the car-buying process for consumers. CarMax (NYSE: KMX) has billed itself as a worthy alternative to higher-pressure sales tactics, and it's worked hard to find better ways to sell cars to bring more customers in its doors.
Coming into Tuesday's second-quarter financial report, CarMax investors had hoped that the auto dealer would build on the positive momentum that it had created earlier in the year. CarMax's numbers were indeed encouraging, and the company thinks it has the long-term vision to maximize its future success.
CarMax's second-quarter results weren't quite as strong as they were in the first quarter, but they still showed a healthy industry environment. Revenue of $5.2 billion was higher by 9% from year-ago levels, and that was quite a bit better than the 6% growth that most following the stock were looking to see. Net income was higher by 6%, at $233.6 million, and earnings of $1.40 per share were better than the consensus forecast of $1.33 per share.
Source Fool.com
