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7 years ago
UPDATE 1-America's Car-Mart Q2 profit misses Wall Street view
November 19, 2010 / 1:35 PM / 7 years ago

UPDATE 1-America's Car-Mart Q2 profit misses Wall Street view

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* Q2 EPS $0.56 vs est $0.65

* Q2 rev up 11 pct

* Sees strong collections during spring

Nov 19 (Reuters) - Auto retailer America's Car-Mart Inc (CRMT.O) posted a quarterly profit that missed market estimates due to higher expenses, but said it is expecting strong collections during the spring.

"Our new store openings are going very well", said CEO William Henderson, adding that the company intends to start four more stores by the end of the fiscal year.

For the August-October quarter, the company reported net income of $6.2 million, or 56 cents a share, compared with $6.3 million, or 53 cents a share, a year ago.

America's Car-Mart, which helps people with limited credit histories buy used cars, said sales rose 11 percent to $91.8 million. Total expenses rose 13 percent to $82 million too.

Analysts on average were expecting the company to earn 65 cents a share, before special items, on revenue of $91.2 million, according to Thomson Reuters I/B/E/S.

The company, which operates 101 automotive dealerships, posted same store revenue growth of 8.1 percent.

CarMax Inc (KMX.N), the largest U.S. retailer of used cars, and America's Car-Mart are among the few companies that weathered the recession as consumers postponed new car buys.

Shares of the Bentonville, Arkansas-based company closed at $28.37 Thursday on Nasdaq. They have lost 6 percent of their value since touching a year-high of $30.10 last week. (Reporting by Fareha Khan in Bangalore; Editing by Don Sebastian)

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