America's Car-Mart, Inc. (NASDAQ: CRMT) Quarterly Earnings Preview
- Earnings per Share (EPS) projection of $0.87 reflects the company's profitability.
- Expected revenue of approximately $369.77 million indicates strong sales generation capabilities.
- The price-to-earnings (P/E) ratio of 70.74 suggests high investor confidence in future growth prospects.
America's Car-Mart, Inc. (NASDAQ:CRMT) is a prominent player in the automotive retail industry, specializing in the sale of used vehicles. Headquartered in Rogers, Arkansas, the company operates numerous dealerships across the United States. As CRMT prepares to release its quarterly earnings on June 17, 2025, analysts are keenly observing the company's financial health and market performance.
Wall Street analysts project CRMT's earnings per share (EPS) to be $0.87 for the upcoming quarter. This figure is crucial as it reflects the company's profitability on a per-share basis. The revenue is expected to reach approximately $369.77 million, indicating the company's ability to generate sales. These projections are based on the company's past performance and market conditions.
CRMT's financial metrics provide insight into its market valuation and operational efficiency. The company has a high price-to-earnings (P/E) ratio of 70.74, suggesting that investors are willing to pay a premium for its earnings. This could indicate strong investor confidence in CRMT's future growth prospects. However, the negative enterprise value to operating cash flow ratio of -16.93 may raise concerns about the company's cash flow generation relative to its valuation.
The company's price-to-sales ratio of 0.34 and enterprise value to sales ratio of 0.96 highlight its market valuation in relation to its sales. These ratios suggest that CRMT's stock is valued at 34 cents for every dollar of sales, and its total valuation is nearly equal to its sales. Additionally, the earnings yield of 1.41% provides a measure of the return on investment for shareholders.
CRMT's financial stability is further underscored by its debt-to-equity ratio of 1.55, indicating a significant reliance on debt financing. However, the current ratio of 6.30 demonstrates strong liquidity, suggesting that the company is well-positioned to meet its short-term liabilities. As CRMT releases its earnings, these financial metrics will be closely scrutinized by investors and analysts alike.
| Symbol | Price | %chg |
|---|---|---|
| TURI.JK | 1560 | 0 |
| MPMX.JK | 965 | -0.52 |
| IMAS.JK | 790 | -0.63 |
| BOGA.JK | 560 | -0.89 |
America’s Car-Mart Drops 10% Despite Q4 Earnings Beat
America’s Car-Mart (NASDAQ:CRMT) delivered stronger-than-expected fourth-quarter results, but shares dropped over 10% intra-day today. The used car retailer reported earnings per share of $1.26 for the quarter, beating the consensus estimate of $0.99. Revenue rose 1.5% year-over-year to $370.2 million, surpassing analyst projections of $360.02 million.
President and CEO Doug Campbell described fiscal year 2025 as a “pivotal period of transformation,” highlighting foundational improvements aimed at supporting long-term growth.
In Q4, total retail units sold increased 2.6% to 15,649 vehicles. The average retail sales price declined by $316 year-over-year to $17,240, reflecting the company’s push to enhance vehicle affordability. Gross profit margin rose by 90 basis points to 36.4%.
Net charge-offs as a percentage of average finance receivables improved to 6.9%, down from 7.3% in the prior year, as both loss frequency and severity declined.
For the full year 2025, revenue totaled $1.4 billion, essentially flat year-over-year, while diluted EPS rebounded to $2.33 from a loss of $4.92 in fiscal 2024.
America's Car-Mart, Inc. (NASDAQ:CRMT) Faces Financial Challenges in Q1 Fiscal Year 2025
- America's Car-Mart, Inc. (NASDAQ:CRMT) reported a loss per share of -$0.15, missing the estimated EPS of $0.57 significantly.
- Despite a challenging quarter, CRMT saw a slight increase in revenue, totaling $347.76 million, exceeding the Zacks Consensus Estimate by 0.20%.
- The company's financial resilience is highlighted by a remarkably high current ratio of 4771.84, indicating strong liquidity.
America's Car-Mart, Inc. (NASDAQ:CRMT), a prominent player in the automotive retail industry, recently disclosed its financial results for the first quarter of fiscal year 2025. The company, headquartered in Rogers, Arkansas, specializes in selling used cars and providing financing for its customers. It operates in a competitive market, facing challenges from both traditional car dealerships and newer online platforms that offer vehicle sales and financing options. Despite these challenges, CRMT has carved out a niche by focusing on customers who may not qualify for traditional financing, offering them a path to vehicle ownership.
In the reported quarter, CRMT revealed an earnings per share (EPS) of -$0.15, missing the estimated EPS of $0.57 by a significant margin. This performance marks a notable downturn from the previous year's earnings of $0.63 per share, highlighting a challenging period for the company. The reported loss represents an earnings surprise of -126.32%, indicating a substantial deviation from what analysts had anticipated. This unexpected loss contrasts sharply with the company's performance in the previous quarter, where it met expectations with earnings of $0.06 per share, suggesting a recent shift in the company's financial health.
Despite the earnings miss, CRMT reported a slight increase in revenue, totaling $347.76 million for the quarter. This figure exceeded the Zacks Consensus Estimate by 0.20%, albeit falling short of the previous year's revenues of $368.03 million. The revenue growth, despite a decrease from the previous year, indicates that the company is still managing to generate sales in a challenging market. This mixed financial picture is further complicated by the company's struggle to surpass consensus EPS estimates over the last four quarters, underscoring ongoing operational and strategic challenges.
The financial details reveal a nuanced picture of America's Car-Mart's current situation. While revenue saw a modest increase, profitability took a hit, with the company experiencing a loss per share of -$0.15. This loss is a significant shift from the diluted earnings per share of $0.63 reported in the same quarter of the previous year. The company also faced an increase in net charge-offs as a percentage of average finance receivables, rising to 6.4% from 5.8%, and a surge in interest expenses by 28.3%, an increase of $4.0 million. However, there were positive developments, such as a rise in interest income by 7.2% and an improvement in total collections by 4.3%.
The financial metrics, including a price-to-earnings (P/E) ratio of -8.81 and a price-to-sales (P/S) ratio of 0.23, reflect the challenges CRMT faces in returning to profitability and generating positive cash flows. The negative earnings yield of -11.35% further highlights the company's current unprofitability. However, a remarkably high current ratio of 4771.84 suggests that America's Car-Mart has a strong liquidity position, with ample assets to cover its short-term liabilities. This financial resilience, combined with strategic initiatives like the new loan origination system (LOS) mentioned by CEO Doug Campbell, could play a crucial role in the company's efforts to navigate the economic challenges facing its customer base and rebound in sales volume.
America's Car-Mart, Inc. (NASDAQ:CRMT) Faces Financial Challenges in Q1 Fiscal Year 2025
- America's Car-Mart, Inc. (NASDAQ:CRMT) reported a loss per share of -$0.15, missing the estimated EPS of $0.57 significantly.
- Despite a challenging quarter, CRMT saw a slight increase in revenue, totaling $347.76 million, exceeding the Zacks Consensus Estimate by 0.20%.
- The company's financial resilience is highlighted by a remarkably high current ratio of 4771.84, indicating strong liquidity.
America's Car-Mart, Inc. (NASDAQ:CRMT), a prominent player in the automotive retail industry, recently disclosed its financial results for the first quarter of fiscal year 2025. The company, headquartered in Rogers, Arkansas, specializes in selling used cars and providing financing for its customers. It operates in a competitive market, facing challenges from both traditional car dealerships and newer online platforms that offer vehicle sales and financing options. Despite these challenges, CRMT has carved out a niche by focusing on customers who may not qualify for traditional financing, offering them a path to vehicle ownership.
In the reported quarter, CRMT revealed an earnings per share (EPS) of -$0.15, missing the estimated EPS of $0.57 by a significant margin. This performance marks a notable downturn from the previous year's earnings of $0.63 per share, highlighting a challenging period for the company. The reported loss represents an earnings surprise of -126.32%, indicating a substantial deviation from what analysts had anticipated. This unexpected loss contrasts sharply with the company's performance in the previous quarter, where it met expectations with earnings of $0.06 per share, suggesting a recent shift in the company's financial health.
Despite the earnings miss, CRMT reported a slight increase in revenue, totaling $347.76 million for the quarter. This figure exceeded the Zacks Consensus Estimate by 0.20%, albeit falling short of the previous year's revenues of $368.03 million. The revenue growth, despite a decrease from the previous year, indicates that the company is still managing to generate sales in a challenging market. This mixed financial picture is further complicated by the company's struggle to surpass consensus EPS estimates over the last four quarters, underscoring ongoing operational and strategic challenges.
The financial details reveal a nuanced picture of America's Car-Mart's current situation. While revenue saw a modest increase, profitability took a hit, with the company experiencing a loss per share of -$0.15. This loss is a significant shift from the diluted earnings per share of $0.63 reported in the same quarter of the previous year. The company also faced an increase in net charge-offs as a percentage of average finance receivables, rising to 6.4% from 5.8%, and a surge in interest expenses by 28.3%, an increase of $4.0 million. However, there were positive developments, such as a rise in interest income by 7.2% and an improvement in total collections by 4.3%.
The financial metrics, including a price-to-earnings (P/E) ratio of -8.81 and a price-to-sales (P/S) ratio of 0.23, reflect the challenges CRMT faces in returning to profitability and generating positive cash flows. The negative earnings yield of -11.35% further highlights the company's current unprofitability. However, a remarkably high current ratio of 4771.84 suggests that America's Car-Mart has a strong liquidity position, with ample assets to cover its short-term liabilities. This financial resilience, combined with strategic initiatives like the new loan origination system (LOS) mentioned by CEO Doug Campbell, could play a crucial role in the company's efforts to navigate the economic challenges facing its customer base and rebound in sales volume.
