America’s Car-Mart (NASDAQ:CRMT) Posts Earnings Results, Misses Expectations By $1.27 EPS

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

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 Trading Down 21.1%

Shares of NASDAQ:CRMT traded down $4.02 during trading on Thursday, hitting $15.03. 283,197 shares of the company were exchanged, compared to its average volume of 95,894. America’s Car-Mart has a fifty-two week low of $15.03 and a fifty-two week high of $62.72. The stock has a market cap of $124.62 million, a price-to-earnings ratio of -8.43 and a beta of 1.16. The firm has a fifty day moving average price of $23.92 and a two-hundred day moving average price of $26.45.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on CRMT shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of America’s Car-Mart in a research note on Monday, December 29th. Wall Street Zen downgraded shares of America’s Car-Mart from a “hold” rating to a “sell” rating in a research note on Friday, November 28th. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $45.00.

Hedge Funds Weigh In On America’s Car-Mart

Hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC acquired a new stake in America’s Car-Mart in the first quarter valued at $209,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of America’s Car-Mart by 6.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,310 shares of the company’s stock worth $196,000 after purchasing an additional 255 shares during the last quarter. Jones Financial Companies Lllp raised its holdings in shares of America’s Car-Mart by 492.5% in the 1st quarter. Jones Financial Companies Lllp now owns 1,191 shares of the company’s stock valued at $54,000 after purchasing an additional 990 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of America’s Car-Mart by 11.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 195,860 shares of the company’s stock valued at $8,890,000 after purchasing an additional 19,389 shares during the period. Finally, Rhumbline Advisers lifted its stake in America’s Car-Mart by 11.7% in the 2nd quarter. Rhumbline Advisers now owns 11,693 shares of the company’s stock valued at $655,000 after purchasing an additional 1,229 shares during the last quarter. 89.10% of the stock is owned by institutional investors.

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.