America's Car-Mart gains, swings to Q2 profit
Shares of America’s Car-Mart, Inc. (Nasdaq: CRMT) are driving in the fast lane on news before the start of trading that the automotive retailer swung to a fiscal second-quarter profit.
Net income for the three months ended Oct. 31 was $3.5 million, or $0.29 per share, compared with a net loss of $1.9 million, or $0.16 per share, a year earlier. Six analysts polled by Thomson Financial were expecting earnings of $0.16 per share.
The Bentonville, Ark.-based company, which operates 93 dealerships in nine states, reported that revenues increased 14.6% to $68.2 million compared with $59.5 million during the second quarter of fiscal 2007. The result is above analysts’ projected revenue of $60.87 million.
“Vehicle sales were strong during the quarter as we are beginning to realize the benefits of our increased advertising efforts and numerous sales initiatives,” said Chairman T. J. Falgout, III in a statement. “Also, our recent initiatives related to vehicle acquisition and improved car quality are having a positive effect on both sales and collections.”
America’s Car-Mart reported that vehicle sales increased 7.8% to 6,914, compared with 6,413 in the same period a year ago, while same-store revenue added 12.3%.
At 11:56 a.m. ET, shares of America’s Car-Mart (CRMT) had climbed $1.52, or 14%, to $12.20. The 52-week high of $14.20 was established on July 20, while the 52-week low of $10.27 was set on Feb. 1.
