America's Car-Mart (CRMT) Reports Earnings Tomorrow. What To Expect

Used-car retailer America’s Car-Mart (NASDAQ:CRMT) will be reporting results tomorrow before the bell. Here's what to look for.

Last quarter America's Car-Mart reported revenues of $361.6 million, up 2.8% year on year, missing analyst expectations by 3.8%. It was a weak quarter for the company. Same-store sales missed, leading to a revenue shortfall vs. expectations. Most worrying was a huge step-up in provision for credit losses, which impacted margins and EPS.

Is America's Car-Mart buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting America's Car-Mart's revenue to grow 7.5% year on year to $351 million, slowing down from the 13.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.65 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St'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 of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lithia delivered top-line growth of 10.5% year on year, missing analyst estimates by 3.5% and Camping World reported revenue decline of 13.4% year on year, missing analyst estimates by 2.5%. Lithia traded down 1.2% on the results, and Camping World was down 4.5%.

Read our full analysis of Lithia's results here and Camping World's results here.

There has been positive sentiment among investors in the automotive and marine retail segment, with the stocks up on average 6.3% over the last month. America's Car-Mart is up 2.2% during the same time, and is heading into the earnings with analyst price target of $62, compared to share price of $62.4.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.