America’s Car-Mart (CRMT) Lags Second Quarter Earnings Estimates
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America’s Car-Mart (CRMT) made quarterly profit of $ 3.33 per share, missing Zacks’ consensus estimate of $ 3.41 per share. This compares to earnings of $ 3.05 per share a year ago. These figures are corrected for non-recurring items.
This quarterly report represents a profit surprise of -2.35%. A quarter ago, this auto retailer was expected to post a profit of $ 3.55 per share when it actually produced a profit of $ 3.57, delivering a surprise of 0.56% .
In the past four quarters, the company has beaten consensus EPS estimates three times.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will depend primarily on management feedback on the profit call.
U.S. Car-Mart stocks have risen about 15.1% year-to-date against the S&P 500’s 25.2% gain.
What’s next for America’s Car-Mart?
While America’s Car-Mart has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable metric that can help investors solve this problem is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Before this publication of the results, the trend of revisions of estimates for the American Car-Mart was mixed. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status results in a Zacks Rank # 3 (Hold) for the stock. Thus, stocks are expected to move in line with the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus estimate of EPS is $ 3.13 on $ 273.24 million of revenue for the coming quarter and $ 13.31 on $ 1.13 billion of revenue for the current year.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Automotive – Retail and Whole Sales is currently in the top 8% of the more than 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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America’s CarMart, Inc. (CRMT): Free Inventory Analysis Report
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