NASDAQ$CRMT
Americas Car-Mart Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
America’s Car-Mart reported earnings for Q3 2023, which reflected market share gains in a challenging used vehicle market and strategic investments for long-term growth.
America's Car-Mart reported a 2.7% increase in unit volumes due to market share gains, despite severe winter storms impacting sales. The company is focused on supporting customers and communities, with strategic reorganization and investments aimed at improving efficiencies and long-term profitability.
- Unit volumes increased by 2.7% due to market share gains.
- Gross profit totaled $92.5 million, with unit gross profits at $6,373.
- Net charge-offs as a percent of average finance receivables were 5.9%.
- Interest income increased by 31.0% to $51.1 million due to higher average finance receivables and interest rate increases.
Headline financials
Revenue & EPS history
Car-Mart · Revenue · Quarterly
$327M
Forward guidance
America's Car-Mart anticipates improvements in volume productivity and gross margins, leveraging SG&A, and strategic acquisitions to generate historical levels of return on equity over the next three to five years. They expect capital expenditures to be approximately $15-20 million for fiscal year 2024.
Tailwinds
- Expects to generate returns on equity at historical levels by increasing volume productivity.
- Anticipates improving gross margins as a function of procurement initiatives.
- Plans to leverage SG&A.
- Pursuing acquisitions of well-operated dealerships.
- Expects dealerships to be selling an average of 40-50 vehicles per month and eventually supporting an average of 1,000 or more active customers within the next three years.
Headwinds
- Short-term operating conditions are difficult.
- Severe winter storms disrupted operations in January, negatively impacting sales volumes by an estimated 300-400 units.
- Many potential customers are sitting on the sidelines based on affordability.
- Higher vehicle prices have resulted in longer contract term lengths.
- Interest expense increased to $9.8 million due to higher borrowing levels and increased interest rates.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 2023
+1.0%
Avg return
Earnings day
+2.9%
Avg return
5 days after
-1.5%
Avg return
30 days after
56%
37 / 66 earnings
Positive
+27.9%
Q4 2022
Best reaction
-26.3%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | +9.1% | +75.5% | — | |
| Q3 2026 | -8.0% | -36.2% | -41.8% | |
| Q2 2026 | +10.9% | +17.8% | +3.9% | |
| Q1 2026 | -18.0% | -15.7% | -31.5% | |
| Q4 2025 | +0.0% | -0.6% | +22.8% | |
| Q3 2025 | +15.9% | +15.7% | +13.8% | |
| Q2 2025 | +17.4% | +22.0% | +7.7% | |
| Q1 2025 | -11.6% | -15.4% | -29.0% | |
| Q4 2024 | -2.8% | -4.6% | +7.0% | |
| Q3 2024 | +5.6% | +0.8% | -5.2% | |
| Q2 2024 | -21.3% | -25.1% | -21.1% | |
| Q1 2024 | -16.5% | -3.2% | -4.6% | |
| Q4 2023 | +0.1% | -4.9% | +5.9% | |
| Q3 2023 | -7.0% | -5.6% | -15.0% | |
| Q2 2023 | -4.9% | -1.6% | -1.1% | |
| Q1 2023 | -26.3% | -37.0% | -44.6% | |
| Q4 2022 | +27.9% | +43.8% | +24.7% | |
| Q3 2022 | +8.0% | -5.1% | -8.8% | |
| Q2 2022 | -10.0% | -13.6% | -14.8% | |
| Q1 2022 | -20.1% | -24.0% | -26.4% | |
| Q4 2021 | +8.7% | +12.0% | -3.3% | |
| Q3 2021 | +4.0% | +0.6% | +17.1% | |
| Q2 2021 | +7.5% | +4.1% | +15.2% | |
| Q1 2021 | +5.8% | +2.5% | -11.3% | |
| Q4 2020 | +9.1% | +14.1% | +23.8% | |
| Q3 2020 | +6.7% | -4.7% | -66.7% | |
| Q2 2020 | +14.0% | +15.6% | +24.2% | |
| Q1 2020 | +3.5% | -0.0% | +6.2% | |
| Q4 2019 | -8.7% | -12.5% | -14.7% | |
| Q3 2019 | +3.4% | +4.6% | +6.0% | |
| Q2 2019 | +16.4% | +2.7% | -2.2% | |
| Q1 2019 | +25.6% | +30.1% | +27.3% | |
| Q4 2018 | +14.7% | +18.4% | +23.4% | |
| Q3 2018 | +3.8% | +11.0% | +7.7% | |
| Q2 2018 | +11.3% | +10.5% | +5.0% | |
| Q1 2018 | +1.9% | +4.9% | +8.7% | |
| Q4 2017 | +6.9% | +6.1% | +5.7% | |
| Q3 2017 | -15.6% | -18.0% | -11.3% | |
| Q2 2017 | +2.2% | +4.2% | +7.2% | |
| Q1 2017 | +14.2% | +25.0% | +18.7% | |
| Q4 2016 | -6.9% | +3.3% | +9.9% | |
| Q3 2016 | -3.9% | — | — | |
| Q2 2016 | -12.2% | — | — | |
| Q1 2016 | -12.8% | — | — | |
| Q4 2015 | +0.4% | — | — | |
| Q3 2015 | +3.4% | — | — | |
| Q2 2015 | +12.9% | — | — | |
| Q1 2015 | +11.7% | — | — | |
| Q4 2014 | -1.8% | — | — | |
| Q3 2014 | -4.1% | — | — | |
| Q2 2014 | -5.4% | — | — | |
| Q1 2014 | -5.2% | — | — | |
| Q4 2013 | +0.4% | — | — | |
| Q3 2013 | +10.5% | — | — | |
| Q2 2013 | -11.3% | — | — | |
| Q1 2013 | +0.7% | — | — | |
| Q4 2010 | +7.2% | — | — | |
| Q4 2012 | +7.2% | — | — | |
| Q3 2011 | -3.2% | — | — | |
| Q3 2012 | -3.2% | — | — | |
| Q2 2012 | +2.3% | — | — | |
| Q2 2011 | +2.3% | — | — | |
| Q1 2011 | -2.3% | — | — | |
| Q1 2012 | -2.3% | — | — | |
| Q4 2011 | -2.3% | — | — | |
| Q3 2010 | -0.9% | — | — |
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