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Why Is Copart, Inc. (CPRT) Up 3.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Copart, Inc. (CPRT - Free Report) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Copart, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Copart Q2 Earnings Beat Eatimates & Rise Y/Y
Copart reported second-quarter fiscal 2023 (ended Jan 31, 2023) adjusted earnings per share of 61 cents, beating the Zacks Consensus Estimate of 56 cents. The outperformance was due to higher-than-anticipated service revenues. The bottom line also increased 10.9% year over year. The online auto auction leader generated revenues of $956.7 million, beating the Zacks Consensus Estimate of $934 million. The top line also increased 10.3% from the year-ago reported figure.
Fiscal second-quarter service revenues came in at $789.8 million, up from $711.1 million recorded in the year-earlier period as well as outpacing the consensus mark of $764 million. Service revenues accounted for 82.5% of the total revenues. Vehicle sales totaled $166.9 million in the quarter, up from the prior-year level of $156.4 million. The figure, however, lagged the consensus mark of $169 million.
Gross profit was up 5.7% year over year to $426.5 million. Total operating expenses flared up 13.7% to $591.2 million. General and administrative expenses rose 11.9% from the prior-year quarter to $47.8 million. Operating income rose to $365.5 million from $347.3 million recorded in the year-ago quarter. Net income also inched up 2.2% year over year to $293.6 million.
Copart had cash, cash equivalents and restricted cash of $1,660.9 million as of Jan 31, 2023, compared with $1,384.2 million as of Jul 31, 2022. Long-term debt reduced to $1,946,000 at the end of the reported quarter from $1,996,000 as of Jul 31, 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
At this time, Copart, Inc. has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Copart, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.