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Winners And Losers Of Q4: America's Car-Mart (NASDAQ:CRMT) Vs The Rest Of The Vehicle Retailer Stocks

StockStory - Fri Apr 5, 4:48AM CDT

CRMT Cover Image

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the vehicle retailer stocks, starting with America's Car-Mart (NASDAQ:CRMT).

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 weak Q4; on average, revenues missed analyst consensus estimates by 5.8% Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but vehicle retailer stocks held their ground better than others, with share prices down 0% on average since the previous earnings results.

Slowest 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 $299.6 million, down 7.9% year on year, falling short of analyst expectations by 14.6%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

America's Car-Mart Total Revenue

America's Car-Mart delivered the weakest performance against analyst estimates of the whole group. The stock is down 4% since the results and currently trades at $59.8.

Read our full report on America's Car-Mart here, it's free.

Best Q4: Camping World (NYSE:CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.11 billion, down 13.4% year on year, falling short of analyst expectations by 2.5%. It was a mixed quarter for the company, with a beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

Camping World Total Revenue

Camping World pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 3.4% since the results and currently trades at $25.95.

Is now the time to buy Camping World? 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 $6.15 billion, down 5.5% year on year, falling short of analyst expectations by 2.5%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates.

The stock is up 8% since the results and currently trades at $80.67.

Read our full analysis of CarMax's results here.

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.

Lithia reported revenues of $7.67 billion, up 10.5% year on year, falling short of analyst expectations by 3.5%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates as same store sales fell.

Lithia achieved the fastest revenue growth among its peers. The stock is down 7.5% since the results and currently trades at $276.34.

Read our full, actionable report on Lithia here, it's free.

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