CarMax, Inc (NYSE:KMX) stock fell 1.71% (As on December 22, 11:11:12 AM UTC-4, Source: Google Finance) after the company posted a more than two-fold rise in quarterly profit to beat analyst estimates after cost cuts helped it offset lower demand for used vehicles. The company’s profit jumped to $82 million in the third quarter ended Nov. 30, from $37.6 million, a year ago. Retail used unit sales decreased 2.9% and comparable store used unit sales declined 4.1% from the prior year’s third quarter; strong gross profit per retail used unit of $2,277, in line with last year’s third quarter. Wholesale units increased 7.7% from the prior year’s third quarter; strong gross profit per wholesale unit of $961, in line with last year’s third quarter. Bought 250,000 vehicles from consumers and dealers, up 5.1% versus last year’s third quarter. In which 228,000 of these vehicles were purchased from consumers, up 1.6% over last year’s third quarter and 22,000 of these vehicles were purchased through dealers, up 61.7% from last year’s third quarter. CarMax Auto Finance (CAF) income of $148.7 million, down 2.3% from the prior year third quarter due to compression in the net interest margin percentage, partially offset by a lower provision for loan losses and an increase in average managed receivables.

KMX in the third quarter of FY 24 has reported the adjusted earnings per share of 52 cents, beating the analysts’ estimates for the adjusted earnings per share of 43 cents, according to LSEG data. The company had reported 5.5 percent decline in the adjusted revenue growth to $6.15 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $6.29 billion. Total gross profit was $612.9 million, up 6.3% versus last year’s third quarter.

Additionally, during the third quarter of fiscal year 2024, the company resumed the share repurchase program after a pause initiated during the third quarter of fiscal year 2023. The company repurchased 648,500 shares of common stock for $41.9 million in the quarter. As of November 30, 2023, the company had $2.41 billion remaining available for repurchase under the outstanding authorization.

During the fourth quarter of fiscal year 2024, the company will open four stores including two in the New York metro market and one in each of the Los Angeles and Chicago metro markets. The company will also open the first stand-alone reconditioning center in the Atlanta metro market.