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Copart's Q3 Earnings In Line With Estimates But Sales Miss
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Copart, Inc. (CPRT - Free Report) reported third-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings per share of 42 cents, which came in line with the Zacks Consensus Estimate. The bottom line increased 7.7% year over year. The online auto auction leader generated revenues of $1.21 billion, lagging the Zacks Consensus Estimate of $1.24 billion. The top line, however, rose 7.5% from the year-ago reported figure.
Copart’s fiscal third-quarter service revenues came in at $1.03 billion, which increased from $946.6 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $1.06 billion. Service revenues accounted for 85.4% of total revenues. While U.S. service revenues increased 8% year on year, international service revenues grew 18%.
Vehicle sales totaled $176.8 million in the quarter, which declined from the prior-year quarter’s $180.6 million and fell short of the Zacks Consensus Estimate of $187 million. While sales in the United States surged 22%, international revenues from this business declined 25%.
(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
While facility operations expenses rose 12.3% year over year to $439.4 million, the cost of vehicle sales rose 4.2% to $169.7 million. Facility depreciation and amortization came in at $48.16 million, up 5.2% year over year. Facility stock-based compensation increased 18.6% to $2.15 million.
Gross profit was up 5.1% year over year to $552 million. General and administrative expenses rose 14.8% from the prior-year quarter to $87.4 million. Total operating expenses rose 10.2% to $760 million.
Operating income rose to $451.5 million from $437.2 million recorded in the year-ago quarter. Net income also grew 6.1% year over year to $405.3 million.
Copart had cash, cash equivalents and restricted cash of $2.36 billion as of April 30, 2025, compared with $1.5 billion as of July 31, 2024.
Net cash from operating activities and capex during the quarter under discussion totaled $1.36 billion and $481.3 million, respectively.
Management’s Commentary
Although global insurance volumes were essentially flat year over year, total loss frequency in the United States rose to 22.8% in the first calendar quarter of 2025—up about 100 basis points from the prior year—driven by increasing vehicle complexity and repair costs. This trend benefits Copart’s business model, as a higher total loss rate leads to more salvage vehicles, a key driver of its revenues.
Management highlighted ongoing investments in storage capacity, technology, and operations to stay prepared for both everyday needs and storm-related surges. In the long term, rising total loss frequency should support growth, though near-term volumes may be affected by economic factors like more uninsured or underinsured drivers.
Peer Releases
ACV Auctions Inc. (ACVA - Free Report) released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 4 cents per share, which beat the Zacks Consensus Estimate of 2 cents per share. This compares to break-even earnings per share a year ago. Over the last four quarters, the company surpassed EPS estimates twice and matched on the other two occasions.
ACV Auctions posted revenues of $182.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $145.69 million. For the second quarter, the company expects revenues and adjusted EBITDA in the band of $193-$198 million and $18-$20 million. ACV Auctions forecasts full-year 2025 sales to increase 20-23% year over year.
RB Global, Inc. (RBA - Free Report) released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 89 cents per share, beating the Zacks Consensus Estimate of 86 cents per share. This compares to earnings of 90 cents per share a year ago. The company surpassed EPS estimates in each of the trailing four quarters.
RB Global posted revenues of $1.11 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 9.03%. This compares to year-ago revenues of $1.06 billion. RB Global’s deal to acquire J.M. Wood Auction for roughly $235 million is expected to be closed in the second or third quarter of 2025. RBA declared a quarterly cash dividend of 29 cents/share to be paid on June 20, 2025, to shareholders as of May 29, 2025.
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Copart's Q3 Earnings In Line With Estimates But Sales Miss
Copart, Inc. (CPRT - Free Report) reported third-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings per share of 42 cents, which came in line with the Zacks Consensus Estimate. The bottom line increased 7.7% year over year. The online auto auction leader generated revenues of $1.21 billion, lagging the Zacks Consensus Estimate of $1.24 billion. The top line, however, rose 7.5% from the year-ago reported figure.
CPRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Key Tidbits
Copart’s fiscal third-quarter service revenues came in at $1.03 billion, which increased from $946.6 million recorded in the year-ago period but missed the Zacks Consensus Estimate of $1.06 billion. Service revenues accounted for 85.4% of total revenues. While U.S. service revenues increased 8% year on year, international service revenues grew 18%.
Vehicle sales totaled $176.8 million in the quarter, which declined from the prior-year quarter’s $180.6 million and fell short of the Zacks Consensus Estimate of $187 million. While sales in the United States surged 22%, international revenues from this business declined 25%.
(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
While facility operations expenses rose 12.3% year over year to $439.4 million, the cost of vehicle sales rose 4.2% to $169.7 million. Facility depreciation and amortization came in at $48.16 million, up 5.2% year over year. Facility stock-based compensation increased 18.6% to $2.15 million.
Gross profit was up 5.1% year over year to $552 million. General and administrative expenses rose 14.8% from the prior-year quarter to $87.4 million. Total operating expenses rose 10.2% to $760 million.
Operating income rose to $451.5 million from $437.2 million recorded in the year-ago quarter. Net income also grew 6.1% year over year to $405.3 million.
Copart had cash, cash equivalents and restricted cash of $2.36 billion as of April 30, 2025, compared with $1.5 billion as of July 31, 2024.
Net cash from operating activities and capex during the quarter under discussion totaled $1.36 billion and $481.3 million, respectively.
Management’s Commentary
Although global insurance volumes were essentially flat year over year, total loss frequency in the United States rose to 22.8% in the first calendar quarter of 2025—up about 100 basis points from the prior year—driven by increasing vehicle complexity and repair costs. This trend benefits Copart’s business model, as a higher total loss rate leads to more salvage vehicles, a key driver of its revenues.
Management highlighted ongoing investments in storage capacity, technology, and operations to stay prepared for both everyday needs and storm-related surges. In the long term, rising total loss frequency should support growth, though near-term volumes may be affected by economic factors like more uninsured or underinsured drivers.
Peer Releases
ACV Auctions Inc. (ACVA - Free Report) released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 4 cents per share, which beat the Zacks Consensus Estimate of 2 cents per share. This compares to break-even earnings per share a year ago. Over the last four quarters, the company surpassed EPS estimates twice and matched on the other two occasions.
ACV Auctions posted revenues of $182.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.16%. This compares to year-ago revenues of $145.69 million. For the second quarter, the company expects revenues and adjusted EBITDA in the band of $193-$198 million and $18-$20 million. ACV Auctions forecasts full-year 2025 sales to increase 20-23% year over year.
RB Global, Inc. (RBA - Free Report) released its first-quarter 2025 results on May 7. It came out with quarterly earnings of 89 cents per share, beating the Zacks Consensus Estimate of 86 cents per share. This compares to earnings of 90 cents per share a year ago. The company surpassed EPS estimates in each of the trailing four quarters.
RB Global posted revenues of $1.11 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 9.03%. This compares to year-ago revenues of $1.06 billion. RB Global’s deal to acquire J.M. Wood Auction for roughly $235 million is expected to be closed in the second or third quarter of 2025. RBA declared a quarterly cash dividend of 29 cents/share to be paid on June 20, 2025, to shareholders as of May 29, 2025.