Jefferies Comments On CRMT's "Near Perfect Operating Environment"

America's Car-Mart CRMT has enjoyed a “near perfect operating environment for the past 18-24 months,” Jefferies reports. “While CRMT is likely to remain the dominant player in the buy-here pay-here auto space, we see the environment becoming incrementally less attractive over the next 12-18 months,” Jefferies writes. “Overall results were in-line with our expectations, despite the slight miss to consensus,” Jefferies writes. “Positives in the quarter were improved portfolio yield, in-line credit metrics, and top line revenues of $92.5M that beat our estimate of $89.7M. A 300 bps decline in gross sales margins were the biggest negative in an otherwise quality quarter.” America's Car-Mart currently trades at $24.29.