Why America's Car-Mart Stock Just Crashed
Investors in used-car dealer America's Car-Mart (NASDAQ: CRMT) found themselves in a one-car pileup Thursday, with their stock damaged 22.2% as of 1:40 p.m. ET after reporting a massive earnings miss (but a sales beat) last night.
Heading into its fiscal first quarter of 2023, analysts had forecast Car-Mart would earn $3.14 per share on sales of only $322.4 million. It beat that sales projection, collecting $344.8 million in the quarter. Problem was, it didn't earn nearly as much on those sales as anticipated, with earnings coming in at an even $2 a share.
This was the opposite of what it reported three months ago, when its fourth-quarter 2022 report showed the company beating on both sales and earnings, and indeed, beating earnings by nearly as much as the $1.14 that it missed them by last night.
Source Fool.com
