Q4 Earnings Recap: America's Car-Mart (NASDAQ:CRMT) Tops Vehicle Retailer Stocks

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at America's Car-Mart (NASDAQ:CRMT) and its peers.

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a stunning Q4. As a group, revenues beat analysts’ consensus estimates by 6.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12% since the latest earnings results.

Best Q4: America's Car-Mart (NASDAQ:CRMT)

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $325.7 million, up 8.7% year on year. This print exceeded analysts’ expectations by 15.2%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.

Q4 Earnings Recap: America's Car-Mart (NASDAQ:CRMT) Tops Vehicle Retailer Stocks

America's Car-Mart pulled off the biggest analyst estimates beat of the whole group. The stock is up 14.4% since reporting and currently trades at $43.94.

Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it’s free .

CarMax (NYSE:KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $6.22 billion, up 1.2% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Q4 Earnings Recap: America's Car-Mart (NASDAQ:CRMT) Tops Vehicle Retailer Stocks

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $76.06.

Is now the time to buy CarMax? Access our full analysis of the earnings results here, it’s free .

Lithia (NYSE:LAD)

With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

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