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Vehicle Retailer Stocks Q1 Teardown: America's Car-Mart (NASDAQ:CRMT) Vs The Rest


Radek Strnad /
2024/06/27 5:06 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how America's Car-Mart (NASDAQ:CRMT) and the rest of the vehicle retailer stocks fared in Q1.

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 slower Q1; on average, revenues missed analyst consensus estimates by 1.1%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the vehicle retailer stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.4% on average since the previous earnings results.

Weakest Q1: 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 $364.7 million, down 5.8% year on year, in line with analysts' expectations. It was a weak quarter for the company, with a miss of analysts' gross margin and earnings estimates.

America's Car-Mart Total Revenue

America's Car-Mart achieved the biggest analyst estimates beat of the whole group. The stock is down 2.2% since the results and currently trades at $60.15.

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

Best Q1: 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 $1.36 billion, down 8.3% year on year, falling short of analysts' expectations by 4.4%. It was a decent quarter for the company: While same store sales were down meaningfully and have been down for multiple quarters, this quarter's figure beat expectations. Adjusted EBITDA also exceeded expectations.

Camping World Total Revenue

Camping World had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 11.4% since the results and currently trades at $17.76.

Is now the time to buy Camping World? 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.

Lithia reported revenues of $8.56 billion, up 22.7% year on year, falling short of analysts' expectations by 0.1%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Lithia delivered the fastest revenue growth in the group. The stock is down 5.9% since the results and currently trades at $248.96.

Read our full analysis of Lithia's results here.

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 $7.11 billion, down 7.5% year on year, falling short of analysts' expectations by 0.8%. It was a decent quarter for the company, with a solid beat of analysts' gross margin estimates.

The stock is up 1.9% since the results and currently trades at $72.73.

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

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