Car-Mart recently beat out their earnings estimates, however they didn't meet their revenue estimates for fiscal 2019. The company's profits went up 30.5% and revenue went up by 9.3%. The company also plans on opening two new dealerships within Arkansas.
After the markets closed, Car-Mart reported earnings for the fiscal year that ended April 30 were $47.59 million, or $6.73 per share, up from $36.47 million, or $4.90 per share. Revenue was $669.12 million, up from $612.2 million.
In the fourth quarter, profit rose 43% to $14.56 million, or $2.07 per share, from $10.16 million, or $1.43 per share. Revenue increased by 4.4% to $176.88 million.
Car-Mart beat earnings estimates by 25 cents for the year and the fourth quarter, based on a consensus of five analysts. The company missed revenue expectations by $7.69 million for the fiscal year and $10.16 million for the fourth quarter.
Vehicle sales rose 4.1% to 50,257 in fiscal 2019, and its dealerships sold an average of 29.5 vehicles per month, up from 28.7 for fiscal 2018.
In the fourth quarter, gross profit margin was flat at 40.7%, from the same period in 2018. Net finance receivables increased by 8.3% to $415.49 million. Active loans increased by about 4,500 to 75,600 loans. Average contract length declined to 32.1 months, from 32.5 months.
Accounts over 30 days past due fell 60 basis points to 2.9%. Net charge-offs as a percentage of average finance receivables fell 110 basis points to 6.4%. After the company repossesses a vehicle, it is sold on the wholesale market, and the difference between the loan amount and the wholesale price represents the net charge-off.
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