Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Copart (CPRT) Q3 Earnings Beat, Revenues Miss Estimates

Published 05/24/2017, 09:58 PM
Updated 07/09/2023, 06:31 AM

Copart, Inc. (NASDAQ:CPRT) reported adjusted earnings per share of 38 cents in third-quarter fiscal 2017 (ended Apr 30, 2017) and beat the Zacks Consensus Estimate of 36 cents. The figure shows steep growth of 18.75% from 32 cents, recorded in the year-ago quarter.

Net income was $90.5 million, reflecting an increase of 21.3%,or $15.9 million, from the third quarter of 2016.

Copart’s revenues rose 7.7% to $373.9 million from the year-ago quarter but missed the Zacks Consensus Estimate of $386.1 million. Service revenues went up 9.5% to $332.35 million, while revenues from vehicle sales declined 5.1% to $41.52 million.

Gross margin improved 9.4% to $172.5 million in the reported quarter from $157.6 million, a year ago. Operating expenses also increased to $237.1 million from $225.3 million, recorded in the year-ago quarter.

Operating income shot up to $136.8 million from $121.9 million, reported the year-ago.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. Price, Consensus and EPS Surprise | Copart, Inc. Quote

Financial Details

Copart had cash and cash equivalents of $189.6 million as of Apr 30, 2017 compared with $155.8 million as of Jul 31, 2016. Total debt and capital lease obligations declined to $550.8 million as of Apr 30, 2017 compared with $564.3 million as of Jul 31, 2016.

In the first nine months of fiscal 2017, Copart generated net cash flow of $347.8 million from operations, compared with $208.3 million, a year ago.

Price Performance

Copart outperformed the Zacks categorized Auction and Valuation Services industry in the last three months. While the stock gained 0.77%, the industry saw declined 0.60%. Share price gained from geographic expansion and repurchases.

Zacks Rank & Key Picks

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

Better-ranked companies in the auto space include Sotheby’s (NYSE:BID) , Adient PLC (NYSE:ADNT) and BorgWarner Inc. (NYSE:BWA) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expected long-term growth rate for Sotheby’s, Adient and BorgWarner are 15%, 10.64% and 8.69%, respectively.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>



BorgWarner Inc. (BWA): Free Stock Analysis Report

Adient PLC (ADNT): Free Stock Analysis Report

Sotheby's (BID): Free Stock Analysis Report

Copart, Inc. (CPRT): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.