America’s Car-Mart, Inc. (NASDAQ:CRMT) reported fourth-quarter results on Thursday. The company reported earnings per share of $1.26, beating the analyst consensus estimate of 86 cents.
Quarterly sales of $370.17 million (+1.5% year over year) outpaced the Street view of $351.85 million.
Sales volumes in the quarter under review increased 2.6% to 15,649 units, while interest income increased 4.2% to $2.4 million.
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Net charge-offs as a percentage of average finance receivables improved to 6.9% from 7.3%, while interest expense declined by 2.2%.
The average vehicle sales price decreased $316 year-over-year and $70 sequentially to $17,240, America’s Car-Mart said.
Gross margin increased to 36.4%, compared with 35.5% year over year, reflecting a 90-basis point improvement. This increase was primarily driven by continued optimization in vehicle pricing, procurement, and disposal strategies.
The allowance for credit losses as a percentage of finance receivables, net of deferred revenue, and pending accident protection plan claims improved to 23.25% on April 30 from 24.31% on January 31.
In the quarter under review, the average down payment was 6.2% of the average retail sales price, a slight decrease from 6.5% in the same quarter of 2024.
America’s Car-Mart exited the quarter with cash and equivalents worth $9.808 million. Inventory totaled $112.23 million vs. $107.47 million in the prior quarter.
According to Benzinga Pro, CRMT stock has decreased over 19% in the past year.
Adam K. Peterson, a significant shareholder (more than 10%) of America’s Car-Mart, engaged in notable stock selling, according to an SEC filing on Wednesday.
Through associated entities, Peterson sold 154,269 shares over three days for a total of about $8.69 million. It’s important to note that even after this sale, Peterson remains a substantial shareholder with a significant stake in the company.
Following these transactions, Peterson and the associated entities still hold 1,428,094 shares of America’s Car-Mart.
Price Action: CRMT shares are trading lower by 10.8% to $51.48 at last check Thursday.
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