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Copart (CPRT) Q2 Earnings Meet Estimates, Sales Top, Up Y/Y

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Copart, Inc. (CPRT - Free Report) reported second-quarter fiscal 2020 adjusted earnings per share of 65 cents, meeting the Zacks Consensus Estimate. The figure also came in higher than the year-ago number of 52 cents. Rising service revenues across markets served by the company and expanding network of facilities aided the results. Service revenues came in at $510.03 million, outpacing the consensus estimate of $500 million.

Copart, Inc. Price, Consensus and EPS Surprise

Total revenues came in at $575.1 million, surpassing the Zacks Consensus Estimate of $572 million. The top line also came in 18.6% higher than the year-ago figure of $484.9 million. While service revenues accounted for nearly 88.7% of total revenues, vehicle sales totaled $65.1 million during the quarter, down from the year-ago level of $68.09 million.

Gross profit was up 24.8% year over year to $259.9 million. Total operating expenses rose to $365.2 million from the $320.1 million incurred in the prior-year period. Operating income increased to $209.9 million from the $164.7 million reported in the previous year.

Copart had cash and cash equivalents of $93 million as of Jan 31, 2019. Long-term debt, revolving loan facility and capital-lease obligations were $399.8 million. Its debt-to-capital ratio stands at 16.3%. During the reported quarter, the firm generated net cash flow of $356.9 million from operations compared with the year-ago period’s $215.2 million.

Zacks Rank & Stocks to Consider

Copart currently carries a Zacks Rank of 3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks sector include BRP Inc. (DOOO - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and SPX Corporation (SPXC - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

BRP has a projected earnings growth rate of 20.17% for 2020. Its shares have surged 95.7% over the past year.

Fox Factory has an estimated earnings growth rate of 9.67% for the ongoing year. The company’s shares have appreciated 16.1% in a year’s time.

SPX has an expected earnings growth rate of 6.52% for the current year. The stock has rallied 35.1% in the past year.

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