As you might know, America's Car-Mart, Inc. (NASDAQ:CRMT) just kicked off its latest quarterly results with some very strong numbers. America's Car-Mart delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$326m-15% above indicated-andUS$0.37-140% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for America's Car-Mart
After the latest results, the four analysts covering America's Car-Mart are now predicting revenues of US$1.44b in 2026. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 290% to US$3.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.36b and earnings per share (EPS) of US$3.47 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades,the analysts have not made any major changes to their price target of US$52.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic America's Car-Mart analyst has a price target of US$65.00 per share, while the most pessimistic values it at US$45.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that America's Car-Mart's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than America's Car-Mart.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards America's Car-Mart following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on America's Car-Mart. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for America's Car-Mart going out to 2027, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for America's Car-Mart (1 is a bit concerning!) that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.