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America's Car-Mart Earnings: What To Look For From CRMT

CRMT Cover Image

Used-car retailer America’s Car-Mart (NASDAQ: CRMT) will be reporting earnings tomorrow morning. Here’s what to expect.

America's Car-Mart beat analysts’ revenue expectations by 15.2% last quarter, reporting revenues of $325.7 million, up 8.7% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin 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 5.5% year on year to $343.5 million, in line with the 5.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

America's Car-Mart Total Revenue

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 twice 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 Q1 results, giving us a hint as to what we can expect. Camping World delivered year-on-year revenue growth of 3.6%, missing analysts’ expectations by 1%, and Advance Auto Parts reported a revenue decline of 6.8%, topping estimates by 3.1%. Camping World traded down 14.5% following the results while Advance Auto Parts was up 55.6%.

Read our full analysis of Camping World’s results here and Advance Auto Parts’s results here.

There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 4.8% on average over the last month. America's Car-Mart is up 5.8% during the same time and is heading into earnings with an average analyst price target of $52 (compared to the current share price of $55.79).

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