)
Overview
<ul>
<li>U.S. used car retailer’s Q3 revenue fell 12% yr/yr, missing analyst expectations</li>
<li>Adjusted loss per share for Q3 was -$1.53</li>
<li>Sales volumes declined 22% due to capital constraints, weather, and store consolidations</li>
</ul>
Outlook
<ul>
<li>Company expects cost savings from store consolidations to be reflected starting in fiscal Q4 2026</li>
<li>America’s Car-Mart aims to secure additional financing to restore origination capacity and sales volume</li>
<li>Company says demand for affordable used vehicles among credit-challenged customers remains robust</li>
</ul>
Result Drivers
<ul>
<li>CAPITAL CONSTRAINTS - Co said lower sales volumes were primarily due to reduced origination capacity from ongoing capital structure transition</li>
<li>WEATHER IMPACT - Severe weather in the South-Central U.S. led to significant store closures and further reduced sales in late January</li>
<li>STORE CONSOLIDATIONS - Reduction in active dealership count by 12% year-over-year contributed to lower sales volumes Company press release:</li>
</ul>
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Miss $286.80 $331.93
Revenue mln mln (3
Analysts
)
Q3 Miss -$1.53 -$0.28
Adjusted (2
EPS Analysts
)
<h3>Q3 EPS -$9.25</h3>
Analyst Coverage
<ul>
<li>The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 1 “strong buy” or “buy”, 2 “hold” and no “sell” or “strong sell”</li>
<li>The average consensus recommendation for the auto vehicles, parts &amp; service retailers peer group is “buy”</li>
<li>Wall Street’s median 12-month price target for America’s CAR-MART Inc is $33.00, about 73.2% above its March 11 closing price of $19.05</li>
<li>The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)</li>
</ul>

Car-Mart Inc's Q3 revenue misses estimates on volume decline