CRMT - Why America's Car-Mart Stock Crashed 12% Today
2023-09-05 11:02:27 ET
Shares of America's Car-Mart (NASDAQ: CRMT) had collapsed by 12.2% as of 10:58 a.m. ET Tuesday after the used car dealer reported a big earnings miss and a change in management before the trading session opened.
Heading into its fiscal 2024 first-quarter report, analysts had forecast that America's Car-Mart would earn $0.91 per share on sales of $352.1 million. As it turned out, it beat that consensus revenue prediction, reporting sales of $368 million. However, it missed the earnings estimate badly, earning only $0.63 per share for the quarter.
In its report to shareholders, America's Car-Mart did the logical thing and played up its "strong revenue growth." The top line was up 8.6% year over year on only a 2.4% increase in unit sales. And management explained away the earnings disappointment by asserting that the metric had been "negatively impacted by credit results."
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Why America's Car-Mart Stock Crashed 12% Today