April 5, 2012 / 12:56 PM / 5 years ago

UPDATE 1-CarMax 4th-qtr profit beats as used-car sales rise

* Q4 EPS $0.41 vs est $0.40

* Q4 rev $2.48 bln vs est $2.41 bln

* Used-car sales up 6 pct to 105,769 units

April 5 (Reuters) - CarMax Inc, the largest retailer of used cars in the United States, posted a quarterly profit that beat analysts' estimates as the number of used cars it sold rose for the first time in three quarters.

The company also said it corrected its 2011 and 2012 statements to account for sale-leasebacks it entered into between 1995 and 2009. As a result of the correction, reported net earnings per diluted share were reduced by 2 cents in both years.

CarMax benefited during the recession as cash-strapped consumers looked for bargains. However, rising used-car prices, lower used vehicle supply and increasing competition from new-car dealers had been slowing down sales growth at used-car retailers like CarMax.

Used cars sold in the quarter rose 6 percent to 105,769 units, while the number of wholesale vehicles sold increased 13 percent to 73,897 units.

CarMax, which operates in a fragmented used-car market and competes with America's Car-Mart, said same-store used-unit sales rose 4 percent in the fourth quarter, while wholesale vehicle sales jumped by 18 percent.

Net income rose to $95 million, or 41 cents a share, from $88.8 million, or 39 cents a share, a year ago.

Revenue rose 10 percent to $2.48 billion.

Analysts, on average, had expected a profit of 40 cents a share on revenue of $2.41 b illion, according to Thomson Reuters I/B/E/S.

Shares of the Richmond, Virginia-based company, valued at about $7.91 billion, closed at $34.92 on Wednesday on the New York Stock Exchange.

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