CarMax’s (KMX) stock is up 7% after the used-car retailer announced that it is resuming the stock buyback program that it had paused in 2022.
The company said that it had $2.41 billion U.S. remaining in the share repurchase program that it halted a year ago, and that it would buyback 648,500 shares for $41.9 million U.S. in the current fourth quarter that ends on Dec. 31.
News of the stock buyback program being restarted came as CarMax reported mixed quarterly financial results.
For what was the company’s fiscal third quarter, CarMax announced earnings per share (EPS) of $0.52 U.S., beating Wall Street forecasts of $0.38 U.S.
The earnings were up 117% from $0.24 U.S. a year earlier.
However, CarMax’s revenue of $6.15 billion U.S. missed the $6.29 billion U.S. that had been the consensus expectation of analysts. Sales were down 2.9% from a year ago.
Before today (Dec. 21), CarMax’s stock had increased 23% over the past year and was trading at $74.68 U.S. per share.