Auto retailer America's Car-Mart Inc. reported on Friday a 61 percent higher fiscal second-quarter profit, as consumers turned to the used car market amid tighter credit restrictions.
The Bentonville, Ark., company reported earnings for the three months ended Oct. 31 of $6.3 million, or 53 cents a share, compared with $3.9 million, or 33 cents per share.
Revenue increased 15 percent to $82.6 million, and sales at locations open more than one year rose 11.4 percent.
"Continuing credit constrictions for vehicle consumers and most of our competitors will enhance Car-Mart's position as the leader in our industry," said Chief Executive William H. Henderson. Car-Mart operates 96 automotive dealerships in eight states focused on the buy here/pay here segment of the used car market.
Results beat Wall Street expectations. According to Thomson Reuters, analysts expected 42 cents per share and revenue of $80.6 million.
The company saw a decrease in the number of people with accounts more than 30 days past due in the quarter when compared to a year ago.
In morning trading, shares of the company rose $1.48, or 6.4 percent, to $24.62.