We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Copart (CPRT) Maintain its Earnings Beat Streak in Q2?
Read MoreHide Full Article
Copart, Inc. (CPRT - Free Report) is set to release second-quarter fiscal 2022 results today, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is $1.04 and $787 million, respectively.
In the last reported quarter, the Texas-based online vehicle auctioning company posted an earnings beat on higher-than-expected vehicle sales and service revenues. The bottom line also surged 51.5% year over year. Copart surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 15.3%.
The Zacks Consensus Estimate for quarterly revenues indicates a 27.5% rise year over year. The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 5 cents over the past 90 days. The bottom-line forecast calls for an increase of 30% year over year.
Factors Shaping Q2 Results
Copart’s active presence in the United States and international markets is likely to have bolstered the firm’s performance during the to-be-reported quarter. The Zacks Consensus Estimate for service revenues is pegged at $656 million, indicating an uptick of 23% year over year. Also, the consensus mark for vehicle sales is $116 million, calling for a rise from $84 million reported in the prior-year quarter.
Copart’s buyout of Kentucky-based online auctioning platform, Vincent Auto Solutions, strengthened its footprint in Western Kentucky and is likely to have contributed to sales during the quarter to be reported. The strategic partnership with CHAMPtitles to introduce an automated digital platform for car sellers is also likely to have buoyed the company’s second-quarter fiscal 2022 revenues. Robust demand for vehicle remarketing services and higher average selling prices from international online bidders would also reflect positively on its upcoming results.
Yet, rising operating expenses and high storage and labor costs are expected to have dented margins. The consensus mark for the cost of vehicle sales is pegged at $102 million, implying a year-over-year rise of 38%. Also, increased investments due to business expansion should have clipped Copart’s bottom line to some extent.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Copart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Insurance Auto reported fourth-quarter 2021 results on Feb 11. It posted adjusted earnings of 61 cents a share, in line with the Zacks Consensus Estimate. The bottom line grew from the year-ago earnings of 48 cents a share. Revenues of $548.1 million rose 43% year over year and came ahead of the consensus mark of $498 million.
This Illinois-based auto auction company surpassed earnings estimates in two of the trailing four quarters, matched the mark once and missed the same on another occasion, with the average surprise being 13.6%. The Zacks Consensus Estimate for IAA’s fiscal 2022 and 2023 earnings implies year-over-year growth of 2.9% and 0.07%, respectively. Insurance Auto currently carries a Zacks Rank #4 (Sell).
KAR Auctions is set to report fourth-quarter 2021 results today, after the closing bell. Our model doesn’t conclusively predict an earnings beat for KAR Auctions this time around. The company has an Earnings ESP of +1.97% and a Zacks Rank #2.
The Zacks Consensus Estimate for KAR’s fourth-quarter earnings per share and revenues is pegged at 5 cents and $522 million, respectively. 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%.
Image: Bigstock
Can Copart (CPRT) Maintain its Earnings Beat Streak in Q2?
Copart, Inc. (CPRT - Free Report) is set to release second-quarter fiscal 2022 results today, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is $1.04 and $787 million, respectively.
In the last reported quarter, the Texas-based online vehicle auctioning company posted an earnings beat on higher-than-expected vehicle sales and service revenues. The bottom line also surged 51.5% year over year. Copart surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 15.3%.
Copart, Inc. Price and EPS Surprise
Copart, Inc. price-eps-surprise | Copart, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for quarterly revenues indicates a 27.5% rise year over year. The Zacks Consensus Estimate for fiscal second-quarter earnings has been revised upward by 5 cents over the past 90 days. The bottom-line forecast calls for an increase of 30% year over year.
Factors Shaping Q2 Results
Copart’s active presence in the United States and international markets is likely to have bolstered the firm’s performance during the to-be-reported quarter. The Zacks Consensus Estimate for service revenues is pegged at $656 million, indicating an uptick of 23% year over year. Also, the consensus mark for vehicle sales is $116 million, calling for a rise from $84 million reported in the prior-year quarter.
Copart’s buyout of Kentucky-based online auctioning platform, Vincent Auto Solutions, strengthened its footprint in Western Kentucky and is likely to have contributed to sales during the quarter to be reported. The strategic partnership with CHAMPtitles to introduce an automated digital platform for car sellers is also likely to have buoyed the company’s second-quarter fiscal 2022 revenues. Robust demand for vehicle remarketing services and higher average selling prices from international online bidders would also reflect positively on its upcoming results.
Yet, rising operating expenses and high storage and labor costs are expected to have dented margins. The consensus mark for the cost of vehicle sales is pegged at $102 million, implying a year-over-year rise of 38%. Also, increased investments due to business expansion should have clipped Copart’s bottom line to some extent.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Copart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copart — whose peers include KAR Auctions Services Inc. (KAR - Free Report) and Insurance Auto Auctions aka IAA, Inc. — currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Updates
Insurance Auto reported fourth-quarter 2021 results on Feb 11. It posted adjusted earnings of 61 cents a share, in line with the Zacks Consensus Estimate. The bottom line grew from the year-ago earnings of 48 cents a share. Revenues of $548.1 million rose 43% year over year and came ahead of the consensus mark of $498 million.
This Illinois-based auto auction company surpassed earnings estimates in two of the trailing four quarters, matched the mark once and missed the same on another occasion, with the average surprise being 13.6%. The Zacks Consensus Estimate for IAA’s fiscal 2022 and 2023 earnings implies year-over-year growth of 2.9% and 0.07%, respectively. Insurance Auto currently carries a Zacks Rank #4 (Sell).
KAR Auctions is set to report fourth-quarter 2021 results today, after the closing bell. Our model doesn’t conclusively predict an earnings beat for KAR Auctions this time around. The company has an Earnings ESP of +1.97% and a Zacks Rank #2.
The Zacks Consensus Estimate for KAR’s fourth-quarter earnings per share and revenues is pegged at 5 cents and $522 million, respectively. 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%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.