America’s Car-Mart Inc. (NASDAQ:CRMT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
America’s Car-Mart Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 4.82% to $0.79 in the quarter versus EPS of $0.83 in the year-earlier quarter.
Revenue: Rose 11.4% to $122.54 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: America’s Car-Mart Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company missed the mean analyst estimate of $0.88. It missed the average revenue estimate of $123.64 million.
Quoting Management: “We are very pleased with our top line growth for the quarter. Our General Managers continue to work hard at helping our customers succeed and are meeting the challenges of the current competitive environment head–on. We are determined to earn the repeat business of our customers by doing everything we can to help them purchase a quality vehicle with affordable payment terms and excellent service,” said William H. (“Hank”) Henderson, President and Chief Executive Officer of America’s Car-Mart. “Even though our revenues were up, we feel like we could have done even better as we believe that increased funding to the sub-prime auto industry continues to have a negative effect on our business especially on the provision for credit losses line. We believe that many companies that are competing for our customers on the funding side are not focused on earning repeat business tied to customer success. We believe that by helping our customers successfully complete the terms of their contracts, which has always been and will always be our primary focus, we will continue to fulfill our vision of being the most respected buy-here-pay-here organization in the country.”
Key Stats (on next page)…
Revenue decreased 2.39% from $125.54 million in the previous quarter. EPS decreased 14.13% from $0.92 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.81 to a profit $0.83. For the current year, the average estimate is a profit of $3.62, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)