​CarMax results miss expectations as costs rose

RICHMOND, Va. - CarMax reported worse than expected first-quarter financial results Tuesday as its costs rose.

Shares of CarMax (KMX) fell more than 2 percent in morning trading Tuesday.

The used car dealership reported net profit of $175.4 million, or 90 cents per share, in the three months ending May 31, compared with $182 million, or 86 cents per share, in the same quarter a year ago.

The results missed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 92 cents per share.

Revenue rose nearly 3 percent to $4.13 billion in the period, also missing Street forecasts. Seven analysts surveyed by Zacks expected $4.22 billion.

The Richmond, Virginia-based company said selling and administrative expenses rose 9 percent to $380.3 million.

Shares of CarMax fell $1.31, or 2.6 percent, to $49.32 in morning trading. Its shares are down about 29 percent since a year ago.