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Copart (CPRT) Q1 Earnings & Sales Trump Estimates, Surge Y/Y

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Copart, Inc. (CPRT - Free Report) reported first-quarter fiscal 2022 (ended Oct 31, 2021) adjusted earnings per share of $1.07, surpassing the Zacks Consensus Estimate of 99 cents. Higher-than-expected revenues from both the company’s segments led to this outperformance. The bottom line also surged 35.4% year over year from 79 cents reported in the prior-year quarter.

The online auto auction leader generated revenues of $810.1 million, beating the Zacks Consensus Estimate of $742 million. The top line also increased from the year-ago reported figure of $593 million.

Gross profit was up 29.7% year over year to $385 million. Total operating expenses flared up 39.4% year on year to $480 million. General and administrative expenses shot up 17% from the prior-year quarter to $41.1 million. Nonetheless, operating income increased to $330.1 million from the year-earlier period’s $248.6 million. Net income came in at $260.4 million compared with the year-ago figure of $200.3 million.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote

Segmental Performance

Fiscal first-quarter service revenues came in at $668 million, up from $515.4 million recorded in the year-earlier period. Service revenues accounted for 82.4% of the total revenues. The reported figure also surpassed the Zacks Consensus Estimate of $642 million.

Vehicle sales totaled $142.3 million for the quarter, up from the prior-year level of $77.6 million. The reported figure also surpassed the Zacks Consensus Estimate of $105 million.

Financial Position

Copart had cash and cash equivalents of $1,298.4 million on Oct 31, 2021 compared with $1,048.3 million as of Jul 31, 2021. Long-term debt was $409 million at the end of fiscal first-quarter 2022.

Copart — whose peers include KAR Auctions Services Inc. (KAR - Free Report) and Insurance Auto Auctions aka IAA, Inc. (IAA - Free Report) — currently carries a Zacks Rank #2 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

KAR Auctions reported third-quarter 2021 results on Nov 2. It posted adjusted earnings of 8 cents a share, topping the Zacks Consensus Estimate by a penny. The bottom line, however, contracted from the year-ago earnings of 45 cents a share. Revenues of $535.2 million declined 10% year over year but outpaced the consensus mark of $507 million.

This Indiana-based provider of auction services and technologies for the auto market surpassed earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 45%. The Zacks Consensus Estimate for KAR Auctions’  2021 and 2022 earnings implies year-over-year growth of 49% and 10.1%, respectively. KAR currently carries a Zacks Rank #5 (Strong Sell). Its shares have declined 17.2% year to date.

Insurance Auto also reported third-quarter 2021 results on Nov 2. It posted adjusted earnings of 52 cents a share, missing the Zacks Consensus Estimate by a penny. The bottom line, however, grew from the year-ago earnings of 41 cents a share. Revenues of $420.7 million rose 24.5% year over year and came ahead of the consensus mark of $411 million.

This Illinois-based auto auction company surpassed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.5%. The Zacks Consensus Estimate for Insurance Auto’s 2021 and 2022 earnings implies year-over-year growth of 55.2% and 7.7%, respectively. Insurance Auto currently carries a Zacks Rank #2. IAA shares have declined 17.6% year to date.


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