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Copart (CPRT) Q3 Earnings Beat Estimates, Revenues Up Y/Y

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Copart, Inc. (CPRT - Free Report) reported third-quarter fiscal 2022 (ended Apr 30, 2022) adjusted earnings per share of $1.17, topping the Zacks Consensus Estimate of $1.15. The outperformance was due to higher-than-anticipated revenues from the service and vehicle segments. The bottom line also rose 7.3% year over year from $1.09 reported in the prior-year quarter.

The online auto auction leader generated revenues of $939.9 million, beating the Zacks Consensus Estimate of $860.4 million. The top line also increased 28.1% from the year-ago reported figure of $786.9 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 third-quarter service revenues came in at $766.3 million, up from $623.8 million recorded in the year-earlier period. Service revenues accounted for 81.5% of the total revenues. The figure crossed the consensus mark of $724 million.

Vehicle sales totaled $173.6 million in the quarter, up from the prior-year level of $110.1 million. The figure exceeded the consensus mark of $157 million.

Financial Position

Gross profit was up 14.4% year over year to $436.3 million. Total operating expenses flared up 39.8% to $567.2 million. General and administrative expenses jumped 28.1% from the prior-year quarter to $50.2 million. Nonetheless, operating income increased to $372.7 million from $328.1 million. However, net income fell to $278.6 million from $286.8 million.

Copart had cash and cash equivalents of $1,454.8 million as of Apr 30, 2022, compared with $1,048.3 million as of Jul 31, 2021. Long-term debt was $402.7 million at the end of the reported quarter, increasing from $397.6 million as of Jul 31, 2022.

Zacks Rank & Other Key Picks

CPRT currently carries a Zacks Rank #2 (Buy).

Other top-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

BRP Group has an expected earnings growth rate of 9.2% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.2% upward in the past 60 days.

BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 10.8% over the past year.

Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.

Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 1.5% over the past year.

Standard Motor has an expected earnings growth rate of 1.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2% upward in the past 60 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has lost 11.8% over the past year.

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