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Copart (CPRT) Q1 Earnings & Revenues Beat Estimates, Up Y/Y

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Copart, Inc. (CPRT - Free Report) reported adjusted earnings per share of 33 cents in first-quarter fiscal 2018 (ended Oct 31, 2017), beating the Zacks Consensus Estimate of 26 cents. The bottom line improved 17.9% from 28 cents recorded in the year-ago quarter.

Net income was $77.5 million, reflecting a plunge of 53.7% or $89.8 million from the first quarter of fiscal 2017.

Copart’s revenues rose 21.1% to $419.2 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $377.4 million. Service revenues went up 21.8% to $374.1 million, while revenues from vehicle sales gained 15.8% to $45.1 million.

Copart, Inc. Price, Consensus and EPS Surprise

Gross margin improved 12.4% to $163.3 million in the reported quarter from $145.3 million a year ago. Operating expenses also increased to $295.2 million from $241.2 million, recorded in the prior-year period.

Operating income increased to $124 million from $104.8 million a year ago.

Financial Details

Copart had cash and cash equivalents of $224.2 million as of Oct 31, 2017 compared with $210 million as of Jul 31, 2017. Total debt, revolving loan facility and capital lease obligations were $550.7 million as of Oct 31, 2017, almost same in comparison to $550.8 million as of Jul 31, 2017.

In first-quarter fiscal 2018, Copart generated net cash flow of $93.4 million from operations compared with $74.3 million a year ago.

Price Performance

Shares of Copart have outperformed its industry year to date. The stock has soared 48% of its value compared with the industry’s 11.3% growth.



Zacks Rank & Other Key Picks

Copart carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space are Cummins Inc. (CMI - Free Report) , Toyota Motor Corporation (TM - Free Report) and BorgWarner Inc. (BWA - Free Report) , each sporting a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cummins has a long-term growth rate of 12.1%. Year to date, shares of the company have been up 19.6%.

Toyota has a long-term growth rate of 6.2%. The stock has witnessed the Zacks Consensus Estimate for quarterly earnings per share being revised 4.3% upward to $2.9 over the last 30 days.

BorgWarner has a long-term growth rate of 9.1%. Its shares have been up 19.3% in the last three months.

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