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

America's CAR-MART

12/03/2026 11:38

Overview

U.S. used car retailer's Q3 revenue fell 12% yr/yr, missing analyst expectations

Adjusted loss per share for Q3 was -$1.53

Sales volumes declined 22% due to capital constraints, weather, and store consolidations

Outlook

Company expects cost savings from store consolidations to be reflected starting in fiscal Q4 2026

America's Car-Mart aims to secure additional financing to restore origination capacity and sales volume

Company says demand for affordable used vehicles among credit-challenged customers remains robust

Result Drivers

CAPITAL CONSTRAINTS - Co said lower sales volumes were primarily due to reduced origination capacity from ongoing capital structure transition

WEATHER IMPACT - Severe weather in the South-Central U.S. led to significant store closures and further reduced sales in late January

STORE CONSOLIDATIONS - Reduction in active dealership count by 12% year-over-year contributed to lower sales volumes

Company press release: ID:nGNX1BjNz6

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$286.80 mln
$331.93 mln (3 Analysts)
Q3 Adjusted EPS
Miss
-$1.53
-$0.28 (2 Analysts)
Q3 EPS
-$9.25


Analyst Coverage

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"

The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

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

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 reuters.support@thomsonreuters.com.

(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.)