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Copart's (CPRT) Q3 Earnings & Revenues Surpass Estimates

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Copart, Inc. (CPRT - Free Report) reported adjusted earnings per share of 52 cents in third-quarter fiscal 2018 (ended Apr 30, 2018), beating the Zacks Consensus Estimate of 48 cents. The bottom line improved 36.8% from 38 cents recorded in the year-ago quarter.

Net income was $127.3 million, reflecting a surge of 40.6% or $36.8 million from third-quarter fiscal 2017.

Copart’s revenues rose 27.9% to $478.2 million from the year-ago quarter and surpassed the Zacks Consensus Estimate of $435 million. Service revenues went up 24% year over year to $410.8 million while revenues from vehicle sales gained 62% to $67.4 million in comparison with the prior-year quarter.

Copart, Inc. Price, Consensus and EPS Surprise

Gross profit improved 27% to $219.1 million from $173 million a year ago. Total operating expenses increased to $303.6 million from $237 million recorded in the prior-year period.

Operating income increased to $174.6 million from $136.8 million a year ago.

Financial Details

Copart had cash and cash equivalents of $204.3 million as of Apr 30, 2018, compared with $210 million as of Jul 31, 2017. Long-term debt, revolving loan facility and capital lease obligations were $399 million as of Apr 30, 2018, which recorded a decline from $550.8 million as of Jul 31, 2017.

In third-quarter fiscal 2018, Copart generated net cash flow of $377.2 million from operations compared with $ 347.8 million a year ago.

Zacks Rank & Stocks to Consider

Copart currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Daimler AG (DDAIF - Free Report) , Ferrari N.V. (RACE - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . Daimler and Ferrari carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Daimler has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 0.9% upward over the last 30 days.

Ferrari has an expected long-term growth rate of 17.3%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 11.2% upward over the last 30 days.

Allison Transmission has an expected long-term growth rate of 10%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 6.8% upward over the last 30 days.

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