Used car dealership chain CarMax 1Q profit up

RICHMOND, Va. – Car dealership chain CarMax Inc. said Friday that higher sales of used cars drove its first-quarter profit up more than 21 percent. Revenue grew 19 percent, but its expenses grew 14 percent.

The earnings and revenue results beat Wall Street expectations, sending its shares up initially before giving ground in the afternoon.

The Richmond, Va.-based company, which runs more than 120 stores in 61 markets that mainly sell used cars and trucks, reported earnings of $146.7 million, or 64 cents per share, for the three-month period ended May 31, up from $120.7 million, or 52 cents per share, a year ago.