What To Expect From America's Car-Mart’s (CRMT) Q2 Earnings

Used-car retailer America’s Car-Mart (NASDAQ:CRMT) will be announcing earnings results tomorrow before market hours. Here’s what to look for.

America's Car-Mart met analysts’ revenue expectations last quarter, reporting revenues of $364.7 million, down 5.8% year on year. It was a weak quarter for the company, with a miss of analysts’ earnings 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 6% year on year to $343.7 million, a reversal from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.

The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Lithia delivered year-on-year revenue growth of 13.8%, meeting analysts’ expectations, and Camping World reported a revenue decline of 5%, falling short of estimates by 3.1%. Lithia traded up 5% following the results while Camping World was down 3.9%.

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 share prices up 4.5% on average over the last month. America's Car-Mart is down 1.2% during the same time and is heading into earnings with an average analyst price target of $60.7 (compared to the current share price of $60.5).

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