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Why Is Copart, Inc. (CPRT) Down 3.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Copart, Inc. (CPRT - Free Report) . Shares have lost about 3.1% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Copart Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Copart reported fourth-quarter fiscal 2022 (ended Jul 31, 2022) adjusted earnings per share of $1.13, topping the Zacks Consensus Estimate of $1.08. The outperformance was due to higher-than-anticipated revenues from vehicle sales. The bottom line rose 9.7% year over year from $1.03 reported in the prior-year quarter. Our estimate for fiscal fourth-quarter 2022 EPS was $1.09.
The online auto auction leader generated revenues of $883.4 million, beating the Zacks Consensus Estimate of $873 million. The top line also increased 18% from the year-ago reported figure of $748.6 million. Our estimate for the top line was $887.3 million.
Segmental Performance
Fiscal fourth-quarter service revenues came in at $707.8 million, up from $620 million recorded in the year-earlier period. Service revenues accounted for 80.1% of the total revenues. The figure missed the consensus mark of $738 million. Our estimate was $750.1 million.
Vehicle sales totaled $175.5 million in the quarter, up from the prior-year level of $128.5 million. The figure exceeded the consensus mark of $171 million. Our estimate was $137.3 million.
Financial Position
Gross profit was up 6.7% year over year to $381.6 million. Total operating expenses flared up 25% to $558.6 million. General and administrative expenses jumped 55.1% from the prior-year quarter to $43.2 million. Operating income, however, increased to $325 million from $301.5 million recorded in the year-ago quarter. Net income inched up 3% year over year to $263.7 million.
Copart had cash and cash equivalents of $1,384.2 million as of Jul 31, 2022, compared with $1,048.3 million as of Jul 31, 2021. Long-term debt reduced to $1.9 million at the end of the reported quarter from $397.6 million as of Jul 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Copart, Inc. has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 has been net zero. 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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Why Is Copart, Inc. (CPRT) Down 3.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Copart, Inc. (CPRT - Free Report) . Shares have lost about 3.1% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
Copart Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Copart reported fourth-quarter fiscal 2022 (ended Jul 31, 2022) adjusted earnings per share of $1.13, topping the Zacks Consensus Estimate of $1.08. The outperformance was due to higher-than-anticipated revenues from vehicle sales. The bottom line rose 9.7% year over year from $1.03 reported in the prior-year quarter. Our estimate for fiscal fourth-quarter 2022 EPS was $1.09.
The online auto auction leader generated revenues of $883.4 million, beating the Zacks Consensus Estimate of $873 million. The top line also increased 18% from the year-ago reported figure of $748.6 million. Our estimate for the top line was $887.3 million.
Segmental Performance
Fiscal fourth-quarter service revenues came in at $707.8 million, up from $620 million recorded in the year-earlier period. Service revenues accounted for 80.1% of the total revenues. The figure missed the consensus mark of $738 million. Our estimate was $750.1 million.
Vehicle sales totaled $175.5 million in the quarter, up from the prior-year level of $128.5 million. The figure exceeded the consensus mark of $171 million. Our estimate was $137.3 million.
Financial Position
Gross profit was up 6.7% year over year to $381.6 million. Total operating expenses flared up 25% to $558.6 million. General and administrative expenses jumped 55.1% from the prior-year quarter to $43.2 million. Operating income, however, increased to $325 million from $301.5 million recorded in the year-ago quarter. Net income inched up 3% year over year to $263.7 million.
Copart had cash and cash equivalents of $1,384.2 million as of Jul 31, 2022, compared with $1,048.3 million as of Jul 31, 2021. Long-term debt reduced to $1.9 million at the end of the reported quarter from $397.6 million as of Jul 31, 2021.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Copart, Inc. has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 has been net zero. Notably, Copart, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.