America’s Car-Mart reports Q2 EPS ($4.30), consensus 78c

Reports Q2 revenue $361.6M, consensus $363.76M. “Our second quarter results reflect the Car-Mart team’s commitment and focus on delivering value to our customers during a challenging economy. Revenue was up 2.8%, primarily due to interest income despite unit sales being down 4.6% during the quarter. The persistent inflationary environment impacted existing customers, which was evident in our credit losses. This required an increase in the allowance for credit losses which subsequently impacted the bottom line for the quarter. We believe these headwinds regarding credit loss are shorter-term in nature. The operational investments we’ve made are driving greater efficiencies in the business, one of which was gross margin, which was a bright spot during the quarter. However, we are equally focused on being more agile regarding our cost structure to effectively navigate this environment. We believe this will leave our consumer and our Company well-positioned for success in the long term.”