CarMax (NYSE:KMX) reported strong Q4 results with its top line and EPS beating consensus expectations. The company reported revenues of $4.96 bn versus consensus expectations of $4.7 bn, and its adjusted EPS was $1.30 versus consensus expectation of $1.13. The company's comp unit sales, which most of the investors were watching closely, was up 11% for the quarter and 7.70% for the year.

While it is easy to get excited seeing an 11% increase in comp sales, one should understand that the fourth quarter benefited from one extra day in February due to the leap year and easy comparison from Q4 2019. Last year, there was a delay in processing of tax refunds due to the U.S. government shutdown. So, a couple of weeks' worth of sales shifted from Q4 2019 to Q1 2020. The company reported used unit comps of 2.80% in Q4 2019 and 9.50% in Q1 2020.

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