CarMax reported fiscal year (FY07) 1Q EPS of $0.53 versus $0.35 in the prior year period. Investors may recall we indicated Friday the company earned $0.37 last year in FY1Q06. The company restated 1Q06 results to reflect the new accounting rules for stock option expensing (we don’t believe required, but helpful.) Management indicates the accounting change impacted EPS last year by roughly $0.03, with a penny likely getting lost in rounding.

This year, EPS was negatively impacted by roughly $0.04 a share from the new accounting rule. The results also included $0.03 in favorable items in FY1Q07 in CarMax Auto Finance (CAF) and $0.04 of favorable items last year. Management indicated the curre ...