02:45 PM EST, 12/19/2024 (MT Newswires) -- CarMax ( KMX ) expects comparable sales to improve sequentially in the fourth quarter, pointing to an acceleration so far in December compared with the third quarter's performance.

Chief Executive Bill Nash told analysts on a conference call that the used car retailer expects comparable sales to be "stronger" on a sequential basis in the fourth quarter. That expectation comes despite some headwinds, such as the loss of a Saturday in the fourth quarter, he said, according to a Capital IQ transcript.

"We feel good about the trajectory of sales," Nash said. Shares of CarMax ( KMX ) were up 3.3% in afternoon trade.

Revenue rose to $6.22 billion for the three-month period ended Nov. 30 from $6.15 billion a year ago, versus the $6.05 billion average analyst estimate on FactSet. Used vehicle sales climbed 1.2% to $4.89 billion while the wholesale category edged up 0.3%.

Retail used-vehicle sales volume increased 5.4% year over year, while comparable unit sales rose 4.3%. Wholesale volume grew 6.3%.

Earnings per share rose to $0.81 from $0.52 a year ago.

While some consumers are "still struggling," the company's efforts to reduce friction in the sales buying process has improved customer conversion, Nash said. The US Federal Reserve has reduced interest rates by 1 percentage point since September.

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