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Copart, Inc. (CPRT) Down 5.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Copart, Inc. (CPRT - Free Report) . Shares have lost about 5.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copart, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copart Q1 Earnings Miss & Falls Y/Y
Copart reported first-quarter fiscal 2023 (ended Oct 31, 2022) adjusted earnings per share of 51 cents, missing the Zacks Consensus Estimate of 55 cents. The underperformance was due to lower-than-anticipated service revenues and high costs. The bottom line inched down 5.6% year over year. The online auto auction leader generated revenues of $893.3 million, beating the Zacks Consensus Estimate of $884 million. The top line also increased 10.3% from the year-ago reported figure.
Key Tidbits
Fiscal first-quarter service revenues came in at $726.8 million, up from $667.8 million recorded in the year-earlier period. Service revenues accounted for 81.3% of the total revenues. The figure missed the consensus mark of $729 million. Vehicle sales totaled $166.5 million in the quarter, up from the prior-year level of $142.3 million. The figure exceeded the consensus mark of $164 million.
Gross profit was down 4% year over year to $369.5 million. Total operating expenses flared up 21.2% to $581.8 million. General and administrative expenses rose 8.3% from the prior-year quarter to $44.5 million. Operating income declined to $311.5 million from $330.1 million recorded in the year-ago quarter. Net income contracted 5.6% year over year to $245.8 million.
Copart had cash, cash equivalents and restricted cash of $1,539.4 million as of Oct 31, 2022, compared with $1,384.2 million as of Jul 31, 2022. Long-term debt reduced to $1,969,000 at the end of the reported quarter from $1,996,000 as of Jul 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Copart, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Copart, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Copart, Inc. (CPRT) Down 5.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Copart, Inc. (CPRT - Free Report) . Shares have lost about 5.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Copart, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copart Q1 Earnings Miss & Falls Y/Y
Copart reported first-quarter fiscal 2023 (ended Oct 31, 2022) adjusted earnings per share of 51 cents, missing the Zacks Consensus Estimate of 55 cents. The underperformance was due to lower-than-anticipated service revenues and high costs. The bottom line inched down 5.6% year over year. The online auto auction leader generated revenues of $893.3 million, beating the Zacks Consensus Estimate of $884 million. The top line also increased 10.3% from the year-ago reported figure.
Key Tidbits
Fiscal first-quarter service revenues came in at $726.8 million, up from $667.8 million recorded in the year-earlier period. Service revenues accounted for 81.3% of the total revenues. The figure missed the consensus mark of $729 million. Vehicle sales totaled $166.5 million in the quarter, up from the prior-year level of $142.3 million. The figure exceeded the consensus mark of $164 million.
Gross profit was down 4% year over year to $369.5 million. Total operating expenses flared up 21.2% to $581.8 million. General and administrative expenses rose 8.3% from the prior-year quarter to $44.5 million. Operating income declined to $311.5 million from $330.1 million recorded in the year-ago quarter. Net income contracted 5.6% year over year to $245.8 million.
Copart had cash, cash equivalents and restricted cash of $1,539.4 million as of Oct 31, 2022, compared with $1,384.2 million as of Jul 31, 2022. Long-term debt reduced to $1,969,000 at the end of the reported quarter from $1,996,000 as of Jul 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Copart, Inc. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Copart, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.