CRMT Earnings Prediction
The chart below shows how CRMT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRMT sees a +5.98% change in stock price 10 days leading up to the earnings, and a +4.16% change 10 days following the report. On the earnings day itself, the stock moves by -4.02%. This data can give you a slight idea of what to expect for the next quarter's release.
CRMT Key Earning Data
2024/Q4
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CRMT Earnings Analysis
America's CAR-MART Inc Corporation (CRMT.O) Earnings Conference Call
Positive
Earnings Per Share Surprise: America’s Car-Mart, Inc. reported an EPS of $0.37, significantly beating expectations of $-0.01.
Revenue Increase Analysis: Total revenue increased by 8.7% year-over-year, driven by higher sales volume despite a slight decline in average selling prices.
Sales Volume Increase: Sales volumes were up 13.2% for the quarter, attributed to an earlier launch of the annual tax season promotion and improved lead management through new CRM tools.
Gross Margin Improvement: Gross margin improved to 35.7% from 34.2%, supported by better vehicle procurement and disposal strategies.
Improved Charge-Off Ratios: Net charge-offs as a percentage of average finance receivables improved to 6.1%, down from 6.8% in the prior year quarter, indicating better portfolio performance.
Credit Loss Allowance Decrease: The allowance for credit losses decreased to 24.31%, reflecting the strong performance of receivables originated under the new loan origination system (LOS).
Collections Growth Analysis: Collections increased by 5.2% year-over-year, with the average collected per active customer rising to $568 from $540.
ABL Facility Expansion: The company successfully completed an extension and upsizing of its ABL facility to $350 million, maturing in March 2027, enhancing its capital position.
Strong Market Confidence: The recent ABS transaction was $200 million and oversubscribed by more than 10 times, indicating strong market confidence in the company's performance.
Capital Structure Diversification: The company is focused on diversifying its capital structure and has made key hires to support its capital markets strategy.
Negative
Challenging Customer Environment: The environment for customers is challenging due to persistent inflationary trends, higher used car prices, and elevated interest rates.
Revenue Increase, Pricing Pressure: Despite an increase in total revenue by 8.7%, average selling prices declined by 90 basis points, indicating potential pricing pressure.
Delinquency Rate Increase: The company experienced an increase in delinquencies, with accounts over 30 days past due rising 40 basis points to 3.7%, attributed to winter weather impacting customers' work.
SG&A Expense Increase: SG&A expenses increased by $2.9 million or 6.7%, primarily due to acquisitions and higher stock compensation, which may hinder per-customer efficiency in the short term.
Credit Quality Concerns: The allowance for credit losses remains high at 24.31%, indicating ongoing concerns about credit quality despite some improvements in net charge-offs.
Receivables Loss Concerns: The company noted that receivables originated in fiscal years 2022 and 2023 continue to experience higher frequency of losses, raising concerns about the quality of older contracts.
Cautious Outlook on Performance: The company remains cautious about the macro environment, indicating uncertainty in future performance despite current operational improvements.
CRMT FAQs
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CRMT Earning Call Sentiment
America’s Car-Mart, Inc. (NASDAQ:CRMT) Q3 2025 Earnings Call Transcript
CRMT.O
3.07%Positive
The earnings call reflects a positive sentiment with strong financial performance, including an EPS beat and revenue growth. Despite increased SG&A expenses and delinquencies, improvements in gross margin, net charge-offs, and credit loss allowances are positive. The Q&A highlighted management's optimism about future benefits from process improvements and strong demand from tax refunds. However, concerns over economic factors, regulatory issues, and supply chain challenges persist. Overall, the positive financial metrics and optimistic guidance suggest a positive stock price movement in the short term.
