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Copart (CPRT) to Report Q2 Earnings: What's in the Cards?
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Copart, Inc. (CPRT - Free Report) is set to release second-quarter fiscal 2024 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 35 cents and $1.04 billion, respectively.
The Zacks Consensus Estimate for quarterly revenues indicates a 9.1% rise year over year. The Zacks Consensus Estimate for fiscal second-quarter earnings has remained stable over the past 90 days. The bottom-line forecast implies an increase of 12.9% year over year.
In the last reported quarter, this Texas-based online vehicle auctioning company topped earnings estimates on higher-than-anticipated service revenues. The bottom line also increased 36% year over year. Over the trailing four quarters, Copart surpassed the Zacks Consensus Estimate on each occasion, the average surprise being 10.25%.
Salvage auction volumes are likely to have remained elevated amid increased vehicle miles traveled and higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts might positively impact Copart’s results. The costs of replacing such sophisticated components are extremely high, prompting insurance agencies to declare the vehicles as total loss. An expected increase in total loss rates is expected to have aided the company’s top line. Its large scale, solid market leadership and continued expansion efforts are likely to have aided CPRT’s sales.
On the flip side, elevated investments to support growth initiatives, including expansion of the business in international markets and the United States, are likely to have hurt Copart’s margins in the to-be-reported quarter. Moreover, the company is struggling with high storage and labor costs. Operating costs have also been on the rise for several quarters amid increasing G&A expenditure. In the last reported quarter, the company’s G&A expenditure increased 29.4% year over year. High storage & labor costs and rising operating expenses are also likely to have hurt the company’s result in the to-be-reported quarter.
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. That is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of earnings is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copart currently carries a Zacks Rank of 3.
Earnings Whispers for Other Auto Stocks
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
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Copart (CPRT) to Report Q2 Earnings: What's in the Cards?
Copart, Inc. (CPRT - Free Report) is set to release second-quarter fiscal 2024 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 35 cents and $1.04 billion, respectively.
The Zacks Consensus Estimate for quarterly revenues indicates a 9.1% rise year over year. The Zacks Consensus Estimate for fiscal second-quarter earnings has remained stable over the past 90 days. The bottom-line forecast implies an increase of 12.9% year over year.
In the last reported quarter, this Texas-based online vehicle auctioning company topped earnings estimates on higher-than-anticipated service revenues. The bottom line also increased 36% year over year. Over the trailing four quarters, Copart surpassed the Zacks Consensus Estimate on each occasion, the average surprise being 10.25%.
Copart, Inc. Price and EPS Surprise
Copart, Inc. price-eps-surprise | Copart, Inc. Quote
Factors at Play
Salvage auction volumes are likely to have remained elevated amid increased vehicle miles traveled and higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts might positively impact Copart’s results. The costs of replacing such sophisticated components are extremely high, prompting insurance agencies to declare the vehicles as total loss. An expected increase in total loss rates is expected to have aided the company’s top line. Its large scale, solid market leadership and continued expansion efforts are likely to have aided CPRT’s sales.
On the flip side, elevated investments to support growth initiatives, including expansion of the business in international markets and the United States, are likely to have hurt Copart’s margins in the to-be-reported quarter. Moreover, the company is struggling with high storage and labor costs. Operating costs have also been on the rise for several quarters amid increasing G&A expenditure. In the last reported quarter, the company’s G&A expenditure increased 29.4% year over year. High storage & labor costs and rising operating expenses are also likely to have hurt the company’s result in the to-be-reported quarter.
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. That is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of earnings is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copart currently carries a Zacks Rank of 3.
Earnings Whispers for Other Auto Stocks
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.