America's Car-Mart (NASDAQ:CRMT) Releases Earnings Results

Key Points

• America's Car‑Mart reported an adjusted EPS loss of ($1.53) and revenue of $222.6M, missing estimates, while GAAP results were hit by a $47M non‑cash valuation allowance and higher credit reserves that produced a reported GAAP loss per share of $9.25.
• Retail volume plunged 22.1% year‑over‑year, which management attributes mainly to constrained inventory buying during a transition of its financing platform (no revolving warehouse) and the late‑quarter impact of Winter Storm Fern.
• Management has taken financing and operational steps to stabilize the business, closing a $300M term loan and a $161.3M ABS, expanding digital payments (Pay Your Way enrollments up +250%), and completing 18 store consolidations and workforce reductions to lower future SG&A.

America's Car-Mart (NASDAQ:CRMT - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($1.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.26) by ($1.27), FiscalAI reports. America's Car-Mart had a negative net margin of 1.04% and a positive return on equity of 0.28%. The business had revenue of $222.62 million during the quarter, compared to the consensus estimate of $329.26 million.

Here are the key takeaways from America's Car-Mart's conference call:

• Retail volume fell 22.1% year‑over‑year, which management attributes mainly to constrained inventory buying while transitioning its financing platform (lack of a revolving warehouse) and the late‑quarter impact of Winter Storm Fern.
• Management has made capital‑structure progress — closed a $300M term loan in October and completed a $161.3M residual cash‑flow ABS (2025‑4) in December — positioning the company to reduce funding cost and improve cash flow once a revolving warehouse is secured.
• Digital payments and collections strengthened operations — Pay Your Way enrollments are up >250% with ~65% of payments remote, which supported collections (total collections +1.5% YoY; average collected per active account +2.3%) and helped weather the storm disruption.
• Cost rationalization is underway — 18 store consolidations and workforce reductions were completed, generating one‑time charges (~$2.8M) but expected run‑rate SG&A savings that should start flowing through in Q4.
• Credit and accounting items weighed on GAAP results — allowance for credit losses rose to 25.53% of receivables and the company recorded a $47M non‑cash valuation allowance on deferred tax assets plus reserve and impairment adjustments, contributing to a GAAP loss per share of $9.25 (adjusted loss per share: $1.53).

America's Car-Mart Price Performance

NASDAQ CRMT traded down $4.02 on Thursday, reaching $15.04. The company had a trading volume of 241,789 shares, compared to its average volume of 95,136. The firm has a market cap of $124.64 million, a price-to-earnings ratio of -8.49 and a beta of 1.16. America's Car-Mart has a fifty-two week low of $15.14 and a fifty-two week high of $62.72. The business has a 50 day moving average of $23.92 and a two-hundred day moving average of $26.45.

Institutional Trading of America's Car-Mart

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRMT. Jones Financial Companies Lllp boosted its position in America's Car-Mart by 492.5% during the first quarter. Jones Financial Companies Lllp now owns 1,191 shares of the company's stock valued at $54,000 after acquiring an additional 990 shares during the last quarter. Aquatic Capital Management LLC grew its stake in America's Car-Mart by 48.2% during the third quarter. Aquatic Capital Management LLC now owns 3,699 shares of the company's stock worth $108,000 after purchasing an additional 1,203 shares during the period. Deutsche Bank AG increased its holdings in America's Car-Mart by 12.1% in the fourth quarter. Deutsche Bank AG now owns 4,450 shares of the company's stock worth $112,000 after purchasing an additional 482 shares in the last quarter. Tower Research Capital LLC TRC lifted its stake in America's Car-Mart by 264.3% in the second quarter. Tower Research Capital LLC TRC now owns 2,408 shares of the company's stock valued at $135,000 after buying an additional 1,747 shares during the period. Finally, Quantbot Technologies LP bought a new position in shares of America's Car-Mart during the 3rd quarter worth approximately $137,000. Institutional investors and hedge funds own 89.10% of the company's stock.

Analysts Set New Price Targets

CRMT has been the subject of a number of research reports. Wall Street Zen cut shares of America's Car-Mart from a "hold" rating to a "sell" rating in a report on Friday, November 28th. Weiss Ratings restated a "sell (e+)" rating on shares of America's Car-Mart in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $45.00.

America's Car-Mart Company Profile

America's Car-Mart, Inc operates as a retailer and financer of used automobiles, specializing in serving customers with limited credit histories through an in-house “buy-here, pay-here” financing model. The company's dealerships offer a selection of late-model, pre-owned vehicles across a range of makes and models, supported by on-site service centers and extended warranty products. In addition to vehicle sales, America's Car-Mart generates revenue from finance charges, insurance products and ancillary services such as GAP coverage and credit life and disability insurance.

Founded in 1981 in Forrest City, Arkansas, America's Car-Mart has grown from a single dealership into a publicly traded company listed on the Nasdaq under the ticker CRMT.

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