As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at vehicle retailer stocks, starting with Camping World (NYSE: CWH).

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.4%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.7% since the latest earnings results.

Best Q3: Camping World (NYSE: CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.81 billion, up 4.7% year on year. This print exceeded analysts’ expectations by 3.9%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 38.2% since reporting and currently trades at $10.40.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free for active Edge members.

Lithia (NYSE: LAD)

With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.68 billion, up 4.9% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Lithia achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14.4% since reporting. It currently trades at $356.66.

Is now the time to buy Lithia? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: CarMax (NYSE: KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $6.59 billion, down 6% year on year, falling short of analysts’ expectations by 6.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

CarMax delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 27.4% since the results and currently trades at $41.40.

Read our full analysis of CarMax’s results here.

America's Car-Mart (NASDAQ: CRMT)

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $350.2 million, up 1.2% year on year. This number beat analysts’ expectations by 5.8%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

America's Car-Mart pulled off the biggest analyst estimates beat among its peers. The stock is up 8.6% since reporting and currently trades at $25.33.

Read our full, actionable report on America's Car-Mart here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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