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Shares of the company were up by 6.65% at $70.24 in premarket
trade.
CarMax had in December implemented a series of measures to help
cut costs, such as slowing down on acquiring cars for its
inventory, trimming marketing and capital expenses, and lowering
staffing "from an attrition basis" and pausing hiring for its
corporate office.
"Our deliberate steps to navigate the pressures facing the used
car industry are driving sequential improvements in our
business," CEO William Nash said on Tuesday.
Demand for used cars was dented over the past year due to higher
borrowing costs and soaring commodity and gasoline prices.
CarMax's adjusted fourth-quarter profit came in at 44 cents per
share, ahead of Refinitiv IBES estimates of 24 cents per share.
Its quarterly revenue came in at $5.72 billion, down 25.6% from
a year earlier.
(Reporting by Nathan Gomes in Bengaluru; Editing by Pooja Desai)
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