What's Going With America's Car-Mart Shares Today?
Portfolio Pulse from Nabaparna Bhattacharya
America's Car-Mart, Inc. (NASDAQ:CRMT) reported Q3 FY24 earnings with a loss of $1.34 per share, missing analyst expectations of a $0.65 loss. Revenue was $299.61 million, below the expected $350.95 million. Sales declined by 7.9% due to fewer retail units sold, although the average retail sales price increased by 7.5%. The company sold 11,664 units, a 19.6% decrease from the previous year. Credit application volume decreased by 8.3% year over year. The company has entered into a strategic partnership with Cox Automotive to improve vehicle acquisition and sales processes. Despite the disappointing earnings, CRMT shares rose by 4.11% to $64.86.
March 08, 2024 | 7:06 pm
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America's Car-Mart reported lower than expected Q3 FY24 earnings and revenue, but shares increased by 4.11% to $64.86. The company has partnered with Cox Automotive to improve sales.
Despite the negative earnings report, the stock price of America's Car-Mart increased, likely due to investor optimism about the strategic partnership with Cox Automotive and potential future improvements in sales and operations. The short-term impact appears positive as the market reacts to the partnership news rather than the earnings miss.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100