Used-car retailer America’s Car-Mart (NASDAQ:CRMT) will be reporting earnings tomorrow morning. Here’s what to look for.
America's Car-Mart beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $347.8 million, down 4.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is America's Car-Mart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting America's Car-Mart’s revenue to decline 4.4% year on year to $344.4 million, a reversal from the 3.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. America's Car-Mart has missed Wall Street’s revenue estimates three times over the last two years.
Looking at America's Car-Mart’s peers in the automotive and marine retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Camping World posted flat year-on-year revenue, beating analysts’ expectations by 5.4%, and Lithia reported revenues up 11.4%, falling short of estimates by 2.5%. Camping World traded up 7.1% following the results while Lithia was also up 10.1%.
Read our full analysis of Camping World’s results here and Lithia’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 7.5% on average over the last month. America's Car-Mart is up 15.1% during the same time and is heading into earnings with an average analyst price target of $46.75 (compared to the current share price of $45.83).
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