America’s Car-Mart Reports Record Breaking Earnings of $0.32 EPS and $388.3M Revenue
May 25, 2023
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America’s ($NASDAQ:CRMT) Car-Mart recently released a press statement announcing record-breaking earnings of $0.32 EPS and $388.3M revenue. This surpassed the previously expected amount by $20.37M. The company’s success can be attributed to their commitment to providing quality vehicles, fair financing options, and superior customer service. America’s Car-Mart also stands out from its competitors with their unique business model which eliminates third-party financing sources and results in higher margins for the company.
This strategy has enabled America’s Car-Mart to remain profitable during difficult economic times and has contributed to their recent record-breaking earnings. With the release of these promising numbers, it’s clear that America’s Car-Mart is on a trajectory of sustained success. The company is well-positioned for continued growth in the years to come and their strong financial performance bodes well for investors.
Earnings
In its most recent earnings report for the Fiscal Year 2023 Third Quarter (as of January 31, 2023), AMERICA’S CAR-MART reported an incredible total revenue of $326.53 million, an 11.9% increase compared to the prior year. The company also reported a net income of $1.51 million, a 92.0% decrease from the prior year. Overall, AMERICA’S CAR-MART has seen substantial growth in total revenue over the past three years, increasing from $228.26 million to $326.53 million.
The company’s impressive performance has yielded record-breaking earnings per share of $0.32. This has enabled AMERICA’S CAR-MART to remain a highly successful and competitive player in the automotive industry.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for America’s Car-mart. More…
| Total Revenues | Net Income | Net Margin |
| 1.38k | 42.99 | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for America’s Car-mart. More…
| Operations | Investing | Financing |
| -134.95 | -32.08 | 229.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for America’s Car-mart. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.38k | 889.04 | 77.79 |
Key Ratios Snapshot
Some of the financial key ratios for America’s Car-mart are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.9% | 1.9% | 6.1% |
| FCF Margin | ROE | ROA |
| -11.9% | 10.7% | 3.8% |
Market Price
In response to the news, AMERICA’S CAR-MART stock opened at $73.4 and closed at $82.7, reflecting a 7.4% decrease from the previous closing price of $89.3. Live Quote…
Analysis
GoodWhale has analyzed the fundamentals of AMERICA’S CAR-MART and has assigned them a high risk rating. After a thorough review of its income sheet, balance sheet, cashflow statement, and financial journal, we have detected four risk warnings that may be an indication of hidden financial and business issues. For more specific information on these four risk warnings and how they could affect your investment decision, you can become a registered user with GoodWhale and delve further into the analysis. We believe the information provided will help you make the best decision for your investment portfolio. More…
Peers
In the American car industry, there is intense competition between Car-Mart Inc and its three main competitors, KAR Auction Services Inc, China Yongda Automobiles Services Holdings Ltd, and Copart Inc. Car-Mart Inc is the largest of the four companies, with a market share of 33%. KAR Auction Services Inc is the second largest, with a market share of 22%. China Yongda Automobiles Services Holdings Ltd is the third largest, with a market share of 17%. Copart Inc is the smallest of the four companies, with a market share of 8%.
– KAR Auction Services Inc ($NYSE:KAR)
KAR Auction Services Inc is a provider of vehicle auction and salvage services in North America. The company has a market cap of 1.48B as of 2022 and a ROE of 6.95%. KAR Auction Services operates through three segments: ADESA, Inc., an automotive auction company that provides wholesale vehicle auction and salvage services; Insurance Auto Auctions, Inc., a salvage auto auction company; and Automotive Finance Corporation, a provider of floorplan financing to independent used car dealers.
– China Yongda Automobiles Services Holdings Ltd ($SEHK:03669)
Yongda Automobiles Services Holdings Ltd is a leading provider of auto financing and car rental services in China. The company has a market cap of 8.14B as of 2022 and a return on equity of 14.36%. Yongda Automobiles Services Holdings Ltd offers a wide range of auto financing products and services to its customers, including car loans, leasing, and insurance. The company also operates a nationwide network of car rental outlets.
– Copart Inc ($NASDAQ:CPRT)
Copart Inc is a global leader in online vehicle auctions. The company has a market cap of 30.84B as of 2022 and a Return on Equity of 17.66%. Copart’s online vehicle auction platform connects buyers and sellers of salvage and clean title vehicles in a convenient online environment. The company offers a wide variety of vehicles for sale, including cars, trucks, motorcycles, boats, and RVs. Copart also offers a variety of services to its customers, including vehicle transportation, financing, and insurance.
Summary
America’s Car-Mart reported its second-quarter earnings with a GAAP EPS of $0.32 and a revenue of $388.3M, which exceeded market expectations by $20.37M. Despite the impressive earnings, the stock price fell on the same day. Analysts attribute this to investors being uncertain of the company’s future outlook due to the current uncertain economic environment. Moving forward, investors should remain cautious when investing in America’s Car-Mart and consider the company’s long-term performance and potential risks.
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