U.S. markets closed
  • S&P 500

    4,158.24
    +100.40 (+2.47%)
     
  • Dow 30

    33,212.96
    +575.77 (+1.76%)
     
  • Nasdaq

    12,131.13
    +390.48 (+3.33%)
     
  • Russell 2000

    1,887.90
    +49.66 (+2.70%)
     
  • Crude Oil

    115.07
    +0.98 (+0.86%)
     
  • Gold

    1,857.30
    +3.40 (+0.18%)
     
  • Silver

    22.14
    +0.17 (+0.77%)
     
  • EUR/USD

    1.0739
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    2.7430
    -0.0130 (-0.47%)
     
  • GBP/USD

    1.2631
    +0.0025 (+0.20%)
     
  • USD/JPY

    127.0850
    -0.0170 (-0.01%)
     
  • BTC-USD

    29,102.94
    +308.08 (+1.07%)
     
  • CMC Crypto 200

    625.79
    -3.71 (-0.59%)
     
  • FTSE 100

    7,585.46
    +20.54 (+0.27%)
     
  • Nikkei 225

    26,781.68
    +176.84 (+0.66%)
     

America’s Car-Mart 3Q Profit Beats Estimates As Sales Jump 22%

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Shares of America’s Car-Mart rose 2% on Feb. 16 after the automotive retailer reported strong 3Q results. Its top line was driven by a 16.5% increase in the average sales price and a ~6% increase in the number of units sold.

America’s Car-Mart (CRMT) posted earnings per share (EPS) of $2.85 during the third quarter, which came in ahead of the $2.55 expected by analysts. Revenue increased 22% year-on-year to $228.3 million topping analysts’ estimates of $216.9 million.

SG&A expenses declined to 16.7% of sales during the quarter compared to 18.6% in the comparable year-ago period.

America’s Car-Mart CEO Jeff Williams said, “We believe we are in early stages of transformation from a collections company to more of a sales company that is very good at collections.”

The company is focused on digital push and has begun implementing Microsoft Dynamics 365 which is a full enterprise resource planning tool. This will allow America’s Car-Mart to better manage the complete customer relationship management process. (See America’s Car-Mart stock analysis on TipRanks)

Stephens Analyst Vincent Caintic recently raised the stock’s price target to $154 (12% upside potential) from $128 and reiterated a Buy rating.

Caintic noted that the company’s value proposition has proven itself with both volume and price growth. The analyst believes that a long-term year-on-year topline growth of 10% is achievable.

According to TipRanks’ Smart Score system, America’s Car-Mart gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.

Related News:
T. Rowe Price Ramps Up Quarterly Dividend By 20%; Street Says Hold
FB Financial Ramps Up Dividend By 22%
Kimberly-Clark Tops 4Q Estimates, Hikes Dividend By 6.5%

More recent articles from Smarter Analyst: