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Copart (CPRT) Q2 Earnings Miss Expectations, Increase Y/Y
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Copart, Inc. (CPRT - Free Report) reported second-quarter fiscal 2024 (ended Jan 31, 2024) adjusted earnings per share of 33 cents, missing the Zacks Consensus Estimate of 35 cents on lower-than-expected service revenues and vehicle sales. The bottom line, however, increased 6.4% year over year.
The online auto auction leader generated revenues of $1.02 billion, missing the Zacks Consensus Estimate of $1.04 billion. The top line increased 6.6% from the year-ago reported figure.
CPRT’s fiscal second-quarter service revenues came in at $861.7 million, which increased from $789.8 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $870 million. Service revenues accounted for 84.5% of total revenues. Vehicle sales totaled $158.4 million in the quarter, which declined from the prior year’s level of $166.9 million and missed the Zacks Consensus Estimate of $178 million.
While yard operations expenses rose 7.7% year over year to $366.3 million, the cost of vehicle sales was down 5.1% to $146.8 million. Yard depreciation and amortization came in at $41.2 million, up 21% year over year. Yard stock-based compensation increased 21.3% to $1.6 million.
Gross profit was up 8.8% year over year to $464.2 million. General and administrative expenses rose 51.9% from the prior-year quarter to $72.7 million. Total operating expenses flared up 8.3% to $640.3 million.
Operating income rose to $379.9 million from $365.5 million recorded in the year-ago quarter amid high sales despite the rise in expenses. Net income also shot up 10.8% year over year to $325.5 million.
Copart had cash, cash equivalents and restricted cash of $1.26 billion as of Jan 31, 2024, compared with $957.4 million as of Jul 31, 2023. Long-term debt and other liabilities declined to $0.45 million at the end of the reported quarter from $10.9 million as of Jul 31, 2023.
Net cash from operating activities during the first six months of fiscal 2024 totaled $537 million, up from $499.8 million in the year-ago period. Capex during the first six months of fiscal 2024 was $285.3 million, up 11.1% year over year.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 30 cents, respectively, in the past 30 days.
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Copart (CPRT) Q2 Earnings Miss Expectations, Increase Y/Y
Copart, Inc. (CPRT - Free Report) reported second-quarter fiscal 2024 (ended Jan 31, 2024) adjusted earnings per share of 33 cents, missing the Zacks Consensus Estimate of 35 cents on lower-than-expected service revenues and vehicle sales. The bottom line, however, increased 6.4% year over year.
The online auto auction leader generated revenues of $1.02 billion, missing the Zacks Consensus Estimate of $1.04 billion. The top line increased 6.6% from the year-ago reported figure.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Key Numbers
CPRT’s fiscal second-quarter service revenues came in at $861.7 million, which increased from $789.8 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $870 million. Service revenues accounted for 84.5% of total revenues. Vehicle sales totaled $158.4 million in the quarter, which declined from the prior year’s level of $166.9 million and missed the Zacks Consensus Estimate of $178 million.
While yard operations expenses rose 7.7% year over year to $366.3 million, the cost of vehicle sales was down 5.1% to $146.8 million. Yard depreciation and amortization came in at $41.2 million, up 21% year over year. Yard stock-based compensation increased 21.3% to $1.6 million.
Gross profit was up 8.8% year over year to $464.2 million. General and administrative expenses rose 51.9% from the prior-year quarter to $72.7 million. Total operating expenses flared up 8.3% to $640.3 million.
Operating income rose to $379.9 million from $365.5 million recorded in the year-ago quarter amid high sales despite the rise in expenses. Net income also shot up 10.8% year over year to $325.5 million.
Copart had cash, cash equivalents and restricted cash of $1.26 billion as of Jan 31, 2024, compared with $957.4 million as of Jul 31, 2023. Long-term debt and other liabilities declined to $0.45 million at the end of the reported quarter from $10.9 million as of Jul 31, 2023.
Net cash from operating activities during the first six months of fiscal 2024 totaled $537 million, up from $499.8 million in the year-ago period. Capex during the first six months of fiscal 2024 was $285.3 million, up 11.1% year over year.
Zacks Rank & Key Picks
CPRT currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , General Motors Company (GM - Free Report) and Oshkosh Corporation (OSK - Free Report) . MOD & GM sport a Zacks Rank #1 (Strong Buy) each, while OSK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 30 cents, respectively, in the past 30 days.