Rogers-based America’s Car-Mart Inc. is expected to post higher earnings and revenue in the first quarter of fiscal 2026 as vehicle sales and margins increase, analysts said.
Before the markets open Sept. 4, the buy here, pay here used car dealer is expected to report earnings of 83 cents per share in the quarter that ended July 31, up from a loss of 15 cents per share in the same period last year, based on a consensus of three analysts. Revenue is projected to increase by 3.29% to $359.21 million, up from $347.76 million.
In an earnings preview, equity analysts John Hecht and Matthew Hurwit and equity associates Alexander Villalobos, Yuna Sohn and Jonathan Wetiz, all of Jefferies, expect increases in gross margin and vehicle sales as well as credit and expenses becoming stable.
Analysts said Car-Mart has been improving its gross margin toward the long-term goal, which ranges from 37% to 38%. Margins are expected to be boosted by the potential impact of tariffs and an increase in car values. Retail sales are projected to rise by 6% to about 15,300 vehicles.
Key topics for Car-Mart include “the tariff impact on used car values and the overall market, the affordability for its core customer and roll-out of the impact of new (loan origination system) into dealership infrastructure,” analysts said.
Across the U.S. auto finance industry, lending conditions have been becoming stable if not modestly improving, analysts said. Delinquency rates are falling. Lenders continue to extend terms as affordability remains a concern. Tariffs remain an uncertainty. Rate cuts would support originations and margin growth.
According to the Manheim Used Vehicle Value Index, wholesale used-vehicle prices fell in the first half of August from July. The index was up by 1.2% from August 2024.
“We started to see stronger sales trends in late July and early August for retail and wholesale markets, and that’s causing some additional volatility in wholesale pricing trends in recent weeks, against a stronger comparison from last year,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive. “While the tariffs induced much volatility in the automotive market earlier this year, we still see solid demand for both retail and wholesale vehicles.”
Jefferies analysts have a hold rating on Car-Mart stock with a price target of $58 per share.
Shares of Car-Mart (NASDAQ: CRMT) closed Thursday (Aug. 28) at $46.48, down 23 cents, or 0.49%. In the past 52 weeks the stock has ranged from $36.40 to $62.72.