Looking back on vehicle retailer stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including America's Car-Mart (NASDAQ: CRMT) and its peers.

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.4%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.

America's Car-Mart (NASDAQ: CRMT)

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $350.2 million, up 1.2% year on year. This print exceeded analysts’ expectations by 5.8%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

America's Car-Mart achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 15.4% since reporting and currently trades at $26.92.

Read our full report on America's Car-Mart here, it’s free for active Edge members.

Best Q3: Camping World (NYSE: CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.81 billion, up 4.7% year on year, outperforming analysts’ expectations by 3.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 39.9% since reporting. It currently trades at $10.11.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: CarMax (NYSE: KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $6.59 billion, down 6% year on year, falling short of analysts’ expectations by 6.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

CarMax delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 27.8% since the results and currently trades at $41.21.

Read our full analysis of CarMax’s results here.

Lithia (NYSE: LAD)

With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.68 billion, up 4.9% year on year. This print beat analysts’ expectations by 2.6%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Lithia scored the fastest revenue growth among its peers. The stock is up 10.3% since reporting and currently trades at $344.09.

Read our full, actionable report on Lithia here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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