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Copart (CPRT) Q3 Earnings & Revenues Drive Past Estimates

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Copart, Inc. (CPRT - Free Report) reported earnings per share of 66 cents in third-quarter fiscal 2019 (ended Apr 30, 2019), beating the Zacks Consensus Estimate of 61 cents.  In the year-ago quarter, the bottom line was 52 cents.

Net income was $192.7 million, reflecting an increase of 51.3% or $65.4 million from third-quarter fiscal 2018.

Copart’s revenues rose 15.7% to $553.1 million from the year-ago quarter. Further, revenues surpassed the Zacks Consensus Estimate of $528.2 million. Compared with the prior-year quarter, service revenues increased to $473.7 million from $410.8 million. Revenues from vehicle sales were $79 million in comparison with $67 million in third-quarter fiscal 2018.

Copart, Inc. Price, Consensus and EPS Surprise

 

Gross profit improved 14.8% year over year to $192.7 million. Total operating expenses increased to $345.6 million from $303.6 million recorded in the prior-year period. Operating income increased to $207 million from $174.6 million a year ago.

Financial Details

Copart had cash and cash equivalents of $102.8 million as of Apr 30, 2019, compared with $274.5 million as of Jul 31, 2018. Long-term debt, revolving loan facility and capital lease obligations were $398.8 million as of Apr 30, 2019, similar to the figure recorded as of Jul 31, 2018.

At the end of the first nine months of fiscal 2019, Copart generated net cash flow of $453.5 million from operations compared with $377.2 million in the year-ago period.

Zacks Rank & Stocks to Consider

Copart currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Cummins Inc. (CMI - Free Report) , Ford Motor Company (F - Free Report) and AB Volvo (VLVLY - Free Report) . Cummins and Ford currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cummins has an expected long-term growth rate of 8.4%. The stock has gained 11.1% in the past six months.
Ford has an expected long-term growth rate of 7.3%. The stock has gained 6.1% in the past six months.

Volvo has an expected long-term growth rate of 5%. Over the past six months, shares of the company have gained 3.4%.

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