Copart’s (CPRT) Q3 Earnings and Revenues Beat Estimates

Copart, Inc. CPRT reported third-quarter fiscal 2023 (ended Apr 30, 2023) adjusted earnings per share of 72 cents, beating the Zacks Consensus Estimate of 62 cents. The outperformance was due to higher-than-anticipated service revenues. The bottom line also increased 24.1% year over year.

The online auto auction leader generated revenues of $1,021.8 million, beating the Zacks Consensus Estimate of $1,013.1 million. The top line also increased 8.7% from the year-ago reported figure.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote

Key Stats

Fiscal third-quarter service revenues came in at $847.2 million, up from $766.3 million recorded in the year-earlier period, outpacing the Zacks Consensus Estimate of $814 million.

Service revenues accounted for 82.9% of the total revenues. Vehicle sales totaled $174.6 million in the quarter, up from the prior year’s level of $173.6 million. The figure, however, lagged the Zacks Consensus Estimate of $185 million.

Gross profit was up 10.8% year over year to $483.4 million. Total operating expenses flared up 6.3% to $602.9 million. General and administrative expenses rose 4.4% from the prior-year quarter to $52.3 million. Operating income rose to $418.9 million from $372.8 million recorded in the year-ago quarter. Net income also shot up 25.8% year over year to $350.4 million.

Copart had cash, cash equivalents and restricted cash of $2,114.2 million as of Apr 30, 2023 compared with $1,384.2 million as of Jul 31, 2022. Long-term debt rose to $22.3 million at the end of the reported quarter from roughly $2 million as of Jul 31, 2022.

Zacks Rank & Key Picks

CPRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, BYD Company Limited BYDDY and Wabash National WNC, all of which sport a Zacks Rank #1.

Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 22.82%, respectively.

BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales calls for year-over-year growth of around 209.6%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 19.7%, respectively.

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