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This made the company the biggest climber on the S&P 500 on the day, with a positive trading update providing the impetus for the growth.
CarMax, the biggest used-car seller in the US, increased sales by 7.5 per cent in the first fiscal quarter of the year, with net income in the three months to May 31st reaching $126 million.
In an earnings conference call, chief executive Tom Foillard described the results as "very strong".
He added: "We achieved these results despite economic and marketplace challenges such as lower consumer confidence, high unemployment, elevated gas prices and escalating wholesale prices."
Established in 1993, CarMax has gone on to become a Fortune 500 company, having started life as a dealership that does not charge fees before abandoning that concept due to customer sentiment.
Posted by Chris Weaver
