Back to top

Image: Bigstock

America's Car-Mart (CRMT) to Report Q4 Earnings: What's Up?

Read MoreHide Full Article

America’s Car-Mart, Inc. (CRMT - Free Report) is set to report fourth-quarter fiscal 2019 results, after the market closes on May 21.

The company beat estimates in all of the four trailing quarters. Average surprise was 42.2% in the trailing four quarters.

Long-term earnings per share growth (three-five years) for the company are pegged at 18.9%.

In the last three months, shares of America’s Car-Mart gained 19.7% while the industry grew 5.5%.

Let’s see, how things have shaped up for the upcoming announcement.

Factors Influencing This Quarter

America’s Car-Mart is a big automotive retailer in the United States, operating in the used-car market. The company continues to add dealerships selectively in good communities, which are likely to have positive influence on fiscal fourth-quarter results. Presently, it operates 144 automotive dealerships.

Further, the company continues to invest hugely in infrastructure in order to raise sales and receivable volume. It also aims to raise sales volume per location for the existing lot. All these are likely to have a positive bearing on the soon-to-be-released results.

Earnings Whispers

Our proven model does not conclusively predict that America’s Car-Mart is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: America’s Car-Mart has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are currently pegged at $1.77. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: America’s Car-Mart currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Peer Release

On Apr 30, Oshkosh Corporation (OSK - Free Report) announced second-quarter fiscal 2019 earnings. In the reported quarter, the company posted earnings per share of $1.82 while net sales were $2 billion. The quarterly figures for the company surpassed the respective Zacks Consensus Estimate. It currently carries a Zacks Rank of 2.

On Apr 30, Cummins Inc. (CMI - Free Report) announced first-quarter 2019 earnings. The company posted earnings per share of $4.20 and revenues of $6 billion. Its quarterly numbers beat the respective Zacks Consensus Estimate. The company currently carries a Zacks Rank # 2.

On May 9, Westport Fuel Systems Inc. (WPRT - Free Report) announced first-quarter 2019 results. During the quarter, the company’s net loss from continuing operations was 2 cents per share, narrower than the Zacks Consensus Estimate of loss of 5 cents. Also, its revenues surpassed estimates. The company currently carries a Zacks Rank # 2.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in