America's CarMart Speeds Past Targets

Updated for stock price movements BENTONVILLE, Ark. (TheStreet) -- Judging by its strong quarterly financial results, America's CarMart(CRMT Quote), the chain of used-car dealerships, has been serving as a kind of low-grade cash-for-clunkers program: trade in that used car for a slightly less used car.

The company's profit of 60 cents a share blew past Wall Street expectations by 19 cents. Analysts were looking for 41 cents a share.

That translates to year-over-year bottom-line growth of 33%. Revenue, meanwhile, jumped 10.7% to nearly $84 million, also beating analysts' top-line estimates of $78 million.

Driving revenue growth, the company said, was an 8.5% spike in same-store sales in the quarter.

The results spurred investor bidding in CarMart shares, which gained $2.25, or 11%, to $22.85 midday Tuesday.

The company attributed the performance mostly to its own strategic measures: squeezing all it can out of its most profitable dealership locations. But CarMart CEO William "Hank" Henderson also cited a recession that has changed spending habits and, consequently, allowed the company to take market share.

In Henderson's words, one of the major reasons behind CarMart's success of late has been an "expanding market, which has resulted from credit constrictions for vehicle consumers and most of our competitors."

Henderson doesn't expect those spending habits to change anytime soon. "We believe that the tight consumer credit markets will continue to push more people into our markets," he said.