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Earnings Analysis: 
CarMax Doubles Its Third-Quarter Income
Author: 123jump.com Staff
123jump.com
Last Update: 12:46 PM EST December 20 2006


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Actuant first-quarter profit rose 18%, helped by sales of its industrial tools. CarMax nearly doubled its third-quarter income on strong sales to the wholesale market and increased demand for trucks and sport utility vehicles. Tecumseh Products third-quarter loss widened, due mostly to restructuring in its engine and power train segment. Family Dollar Stores first-quarter net income grew 6% as customers spent more per store visit.

 
Actuant Corp. (ATU: chart), tools and hydraulic equipment maker, reported a first-quarter income of $25.1 million, or 81 cents per share, compared with $21.3 million, or 70 cents per share, a year ago. Quarterly revenue climbed to $343 million versus $283.9 million a year earlier.

CarMax Inc. (KMX: chart), used car retailer, said that its third-quarter net income increased to $45.4 million, or 42 cents per share, compared with $22.9 million, or 22 cents per share, a year earlier. Earnings for the third quarter of both years included share-based compensation costs of 3 cents per share, and earnings for the prior year''s third quarter included a benefit of 3 cents per share from favorable auto finance items. Net revenue climbed to $1.77 billion versus $1.42 billion in the same quarter a year ago. The gains were driven in part by a 30% rise in wholesale vehicle sales.

Tecumseh Products Company (TECUA: chart), makes compressors and engines used in household and commercial products, said that its third-quarter net loss widened to $37.8 million, or $2.05 per share, compared with $37.2 million, or $2.01 per share in the year-ago period. Revenue declined to $429.4 million versus $449.9 million in the third quarter a year ago.

Family Dollar Stores (FDO: chart), discount retailer, reported first-quarter earnings of $54.4 million, or 36 cents per share, up from $51.4 million, or 32 cents per share, a year earlier. Revenue increased 5.9% to $1.6 billion versus $1.51 billion a year earlier. Same-store sales grew 0.9% due to an increase in average customer transaction.
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