Copart (CPRT) To Post Q2 Earnings: What's In The Offing?

Copart, Inc. (NASDAQ:CPRT) is scheduled to report second-quarter fiscal 2020 results on Feb 19, after the bell.

Shares of the company have gained a whopping 91.1% over the past year, significantly outperforming the 72% growth of the industry it belongs to.

Q2 Expectations

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $572.1 million, indicating year-over-year growth of 18%. Rising service revenues across markets served by the company and expanding network of facilities are likely to have boosted its revenues in the quarter.

In the first quarter of fiscal 2020, Copart’s revenues increased 20.2% to $554.4 million from the year-ago quarter’s figure.

Copart, Inc. Revenue (TTM)

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 65 cents, indicating growth of 25% from the year-ago quarter’s reported figure. Service revenue growth is likely to have benefited the bottom line.

In the first quarter of fiscal 2020, adjusted earnings of 65 cents per share increased 38.2% year over year.

What Our Model Says

Our proven Zacks model does not predict an earnings beat for Copart this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Copart has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Republic Services (NYSE:RSG) has an Earnings ESP of +0.21% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Disposal Services (NYSE:ADSW) has an Earnings ESP of +35.85% and a Zacks Rank #3.

ABM Industries Incorporated (NYSE:ABM) has an Earnings ESP of +10.87% and a Zacks Rank #3.

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