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    AMERICAS CARMART (CRMT)

    Q4 2024 Earnings Summary

    Reported on Mar 18, 2025 (Before Market Open)
    Pre-Earnings Price$61.78Last close (Jun 17, 2024)
    Post-Earnings Price$58.00Open (Jun 18, 2024)
    Price Change
    $-3.78(-6.12%)
    • Investments in technology have laid the foundation for future leadership in operating efficiency and a more digitized offering for customers, positioning the company for growth.
    • Expansion through strategic acquisitions, such as the recent acquisition of Texas Auto Center, with more acquisitions planned, demonstrates a commitment to growth and increasing market presence.
    • Management and Board are committed to actions that will drive shareholder value, indicating a strong focus on enhancing shareholder returns.
    • Higher loss frequency accounted for about 58% of the change in the loss provision during the quarter, indicating that more customers are defaulting on their loans.
    • Affordability continues to be a challenge for the industry, as stated by the CEO, suggesting that customers are struggling to afford vehicles, which may lead to decreased sales and increased defaults.
    • The company noted that frequency was the largest driver of losses throughout the year, highlighting ongoing issues with credit quality and customer defaults.
    1. Loss Frequency vs Severity
      Q: Can you explain differences in loss content between severity and frequency?
      A: Frequency was the largest driver of losses this quarter, accounting for about 58% of the change in the provision. The company observed higher frequency throughout the year, while severity was more notable in the second quarter.

    Research analysts covering AMERICAS CARMART.