## America's Car-Mart Posts Big Earnings Miss as Profits Fall for 8th Straight Quarter ### Earnings per share fall by more than half as revenue declines slightly Car-Mart, a leading provider of automotive financing and sales to subprime customers, reported a significant earnings miss for its fiscal third quarter, marking the eighth consecutive quarter of profit decline. The company's earnings per share fell by more than half, from $2.60 in the same quarter last year to $1.23. ### Revenue falls slightly as expenses rise Total revenue for the quarter was $280.2 million, down slightly from $282.5 million in the same period last year. The decrease in revenue was primarily due to a decline in the number of vehicles sold, which fell by 6.7% to 18,364 units. The average selling price of vehicles rose by 4.3% to $16,397, partially offsetting the impact of the decline in volume. Total operating expenses increased by 4.3% to $141.5 million, primarily due to higher personnel costs and advertising expenses. Selling, general, and administrative expenses increased by 3.9% to $113.3 million, while interest expense rose by 15.2% to $28.2 million. ### Delinquencies and repossessions rise The company's credit quality指标恶化,拖欠率上升by 30 basis points to 15.7% and the repossession rate increased by 20 basis points to 6.2%. This increase in delinquencies and repossessions is likely due to the challenging economic environment, as inflation and rising interest rates put pressure on consumers' budgets. ### Outlook For the full fiscal year, Car-Mart expects to earn between $4.85 and $5.15 per share, down from its previous guidance of $5.60 to $5.90 per share. The company also expects revenue to be between $1.13 billion and $1.15 billion, down from its previous guidance of $1.15 billion to $1.17 billion. ### Impact on the stock price Car-Mart's stock price fell by more than 12% in after-hours trading following the release of the earnings report. The stock has now lost more than half of its value over the past year. ### Analyst commentary Analysts are mixed on Car-Mart's prospects. Some analysts believe that the company's focus on subprime customers makes it particularly vulnerable to economic downturns. Others believe that the company's strong track record of profitability and its ability to adapt to changing market conditions will allow it to weather the storm. ### Conclusion Car-Mart's eighth consecutive quarter of declining profits is a cause for concern. The company's increasing delinquencies and repossessions are also a red flag. However, the company's strong track record of profitability and its ability to adapt to changing market conditions may allow it to weather the current economic storm.
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