Copart, Inc. CPRT reported first-quarter fiscal 2023 (ended Oct 31, 2022) adjusted earnings per share of 51 cents, missing the Zacks Consensus Estimate of 55 cents. The underperformance was due to lower-than-anticipated service revenues and high costs. The bottom line inched down 5.6% year over year. The online auto auction leader generated revenues of $893.3 million, beating the Zacks Consensus Estimate of $884 million. The top line also increased 10.3% from the year-ago reported figure.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Fiscal first-quarter service revenues came in at $726.8 million, up from $667.8 million recorded in the year-earlier period. Service revenues accounted for 81.3% of the total revenues. The figure missed the consensus mark of $729 million. Vehicle sales totaled $166.5 million in the quarter, up from the prior-year level of $142.3 million. The figure exceeded the consensus mark of $164 million.
Gross profit was down 4% year over year to $369.5 million. Total operating expenses flared up 21.2% to $581.8 million. General and administrative expenses rose 8.3% from the prior-year quarter to $44.5 million. Operating income declined to $311.5 million from $330.1 million recorded in the year-ago quarter. Net income contracted 5.6% year over year to $245.8 million.
Copart had cash, cash equivalents and restricted cash of $1,539.4 million as of Oct 31, 2022, compared with $1,384.2 million as of Jul 31, 2022. Long-term debt reduced to $1,969,000 at the end of the reported quarter from $1,996,000 as of Jul 31, 2022.
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’s peers include KAR Auctions Services Inc. KAR and Insurance Auto Auctions, aka IAA, Inc. IAA.
KAR Auctions reported third-quarter 2022 results on Nov 1. It posted adjusted earnings of 5 cents a share, which missed the Zacks Consensus Estimate of 15 cents and declined from the year-ago earnings of 8 cents. The company posted revenues of $393 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 0.01%. This compares to the year-ago revenues of $535.2 million.
Over the last four quarters, KAR missed earnings estimates thrice while beating on the other occasion, the average negative surprise being 52.5%. The Zacks Consensus Estimate for KAR Auction’s 2022 earnings and sales implies a year-over-year decline of 62% and 33%, respectively.
Insurance Auto reported third-quarter fiscal 2022 results on Nov 7. It came out with quarterly earnings of 45 cents per share, missing the Zacks Consensus Estimate of 51 cents and declining from 52 cents a year ago. However, revenues of $497.5 million for the quarter ended October 2022 surpassed the Zacks Consensus Estimate by 3.56% and rose from $420.7 million recorded in the year-ago period.
Over the last four quarters, IAA beat the earnings estimates thrice and missed on the other occasion, the average surprise being 6.4%. The Zacks Consensus Estimate for IAA 2022 earnings implies a year-over-year decline of 3%, while that for sales indicates year-over-year growth of 13%.
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