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America's Car-Mart (CRMT)
NASDAQ:CRMT
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Earnings Data
Report Date
Feb 19, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
$0.07Last Year’s EPS
-$1.34Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Dec 05, 2024
|% Change Since: 17.26%
|Next Earnings Date:Feb 19, 2025
Earnings Call Sentiment|Neutral
The earnings call discussed several positive developments, including successful ABS transactions, improved underwriting performance, and better gross margins. However, these were balanced by challenges such as decreased revenues, lower sales volumes, and increased expenses. Overall, the company is making strategic improvements, but it faces headwinds from external economic factors.Company Guidance
During America's Car-Mart's Q2 2025 earnings call, guidance reflected significant financial and operational updates. The company amended its revolving credit facility to provide flexibility amidst macroeconomic uncertainties and raised approximately $74 million through new equity issuance, despite its dilutive impact, to strengthen the balance sheet. They reported a $300 million ABS transaction with a 7.44% coupon, benefiting from a 21% improvement in cumulative net losses due to a new loan origination system (LOS). The LOS has increased down payments by 15%, reduced loan sizes by $400-$800, and decreased originating terms by 3 months. Furthermore, service contract revenue recognition was accelerated, adding $13.2 million this quarter and projected to enhance gross margin by 1%. Total revenues decreased by 3.5% due to a 9.1% drop in retail units sold, despite a 3.6% rise in interest income. The average vehicle retail sales price was $17,251, with net charge-offs at 6.6%, down from 7.2%. The allowance for credit losses was reduced to 24.72% of finance receivables. SG&A expenses rose by 5.7%, primarily due to acquisitions, while interest expenses increased by 8.8% owing to higher rates. The company is testing risk-based pricing in select markets, aiming for better predictability of loss and competitiveness.ABS Transaction Success
Completed a $300 million ABS transaction in October, which was well oversubscribed with $1.5 billion in demand. This resulted in the tightest spreads to date and a significant improvement in the overall coupon to 7.44%.
Improved Underwriting Performance
A 21% improvement in cumulative net losses due to the new loan origination system (LOS), with a focus on high-risk customer cohorts. This has led to a 15% improvement in down payments and reduced loan sizes by $400 to $800.
Gross Margin Improvement
Gross margin as a percentage of sales was 39.4%, or 36.5% excluding the $13.2 million service contract revenue recognition benefit. This represents the highest gross margin percentage in the past 10 quarters.
Reduction in Net Charge-Offs
Net charge-offs as a percentage of average finance receivables decreased from 7.2% to 6.6%.
Collections Improvement
Overall collections are up 3.3% over the previous year, with the monthly average total collected per active customer increasing to $560 from $533.
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CRMT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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CRMT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Dec 05, 2024 | $45.70 | $53.00 | +15.97% |
| Sep 04, 2024 | $59.68 | $50.34 | -15.65% |
| Jun 18, 2024 | $61.78 | $57.81 | -6.43% |
| Mar 08, 2024 | $62.30 | $66.50 | +6.74% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does America's Car-Mart (CRMT) report earnings?
America's Car-Mart (CRMT) is schdueled to report earning on Feb 19, 2025, TBA Not Confirmed.
What is America's Car-Mart (CRMT) earnings time?
America's Car-Mart (CRMT) earnings time is at Feb 19, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CRMT EPS forecast?
CRMT EPS forecast for the fiscal quarter 2025 (Q3) is $0.07.
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