Copart (NASDAQ:CPRT) Issues Earnings Results

Copart (NASDAQ:CPRT) issued its quarterly earnings data on Thursday. The business services provider reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.03), Zacks reports. The firm had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.14 billion. Copart had a return on equity of 16.63% and a net margin of 33.48%.The business’s quarterly revenue was up 2.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.41 EPS.

Here are the key takeaways from Copart’s conference call:

• Copart agreed to acquire ACV Auctions in an all-cash transaction expected to close by year-end. Management expects the deal to be breakeven initially and accretive in the first full year, with synergies from Copart’s locations, logistics network, international buyers, and ACV’s dealer marketplace technology.
• International operations continued to show strong momentum, with fourth-quarter units sold up 10%, insurance units up 11.2%, revenue up 11.7%, and operating income up to $56.8 million. Management plans to expand further in existing markets and enter additional countries.
• Fourth-quarter global units sold declined 2.9%, including a 5.7% decline in the U.S., while U.S. insurance volumes fell 7.5% amid lower collision-claim frequency. Consolidated operating income declined 10.6% and net income fell 17.4% year over year.
• Operating costs increased as Copart invested in long-haul delivery, Title Express, wholesale facilities, and other services; U.S. facility-related costs rose 14.2% per unit in the quarter. Management said it is focused on reducing per-car costs and leveraging additional volume, but offered no earnings or margin guidance.

Copart Stock Performance

CPRT opened at $30.75 on Friday. The company has a market capitalization of $28.47 billion, a P/E ratio of 19.10, a PEG ratio of 1.53 and a beta of 1.03. The company has a 50-day moving average of $30.35 and a 200-day moving average of $32.08. Copart has a 1-year low of $26.81 and a 1-year high of $49.05.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CPRT. Jefferies Financial Group set a $45.00 target price on Copart in a research report on Friday, May 22nd. JPMorgan Chase & Co. raised Copart from a “neutral” rating to an “overweight” rating and increased their price target for the company from $32.00 to $40.00 in a report on Thursday, September 3rd. Zacks Research raised Copart from a “strong sell” rating to a “hold” rating in a report on Monday. Stephens restated an “equal weight” rating and set a $35.00 price objective on shares of Copart in a research note on Thursday, August 20th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Copart in a report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $38.83.

Trending Headlines about Copart

Here are the key news stories impacting Copart this week:

• Positive Sentiment: Copart agreed to acquire ACV Auctions for $10.50 per share in cash, valuing the digital automotive marketplace at approximately $1.9 billion. The deal expands Copart beyond salvage auctions into dealer-to-dealer wholesale remarketing and adds inspection, valuation, and vehicle-pricing data capabilities. Management expects the transaction to support earnings growth beginning in fiscal 2028. Copart to Acquire ACV, Expanding Position Across the Vehicle Remarketing Ecosystem
• Positive Sentiment: Fiscal fourth-quarter revenue reached $1.15 billion, exceeding analysts’ $1.14 billion estimate. Revenue increased 2.4% year over year, while vehicle sales rose 8.3% to $182.9 million. Investors appear to view ACV as a potential long-term growth driver that could broaden Copart’s market and accelerate its digital remarketing strategy. Copart Q4 Revenue Rises 2.4% to $1.15 Billion
• Neutral Sentiment: Copart plans to fund the acquisition with cash on hand. Management expects the combination to be earnings-neutral during the first full year of ownership before becoming accretive, making the strategic benefits longer term rather than an immediate earnings boost. Copart to buy ACV Auctions in $1.9 billion deal
• Negative Sentiment: Quarterly diluted EPS was $0.35, below consensus estimates near $0.38–$0.39 and down from $0.41 a year earlier. Net income fell 17.4% to $327.4 million, gross profit declined 5.5%, and full-year EPS decreased to $1.55 from $1.59, highlighting near-term margin and earnings pressure. Copart Inc. Lags Q4 Earnings Estimates

Insider Activity at Copart

In other news, CEO Jeffrey Liaw sold 27,745 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $30.49, for a total transaction of $845,945.05. Following the transaction, the chief executive officer owned 99,641 shares of the company’s stock, valued at approximately $3,038,054.09. This trade represents a 21.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 9.60% of the company’s stock.

Institutional Investors Weigh In On Copart

A number of institutional investors have recently made changes to their positions in CPRT. State Street Corp lifted its stake in Copart by 1.3% during the fourth quarter. State Street Corp now owns 37,555,437 shares of the business services provider’s stock worth $1,470,295,000 after purchasing an additional 492,506 shares during the last quarter. Morgan Stanley increased its stake in Copart by 1.5% during the fourth quarter. Morgan Stanley now owns 12,706,076 shares of the business services provider’s stock valued at $497,443,000 after purchasing an additional 184,339 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Copart by 6.0% during the fourth quarter. Invesco Ltd. now owns 11,586,115 shares of the business services provider’s stock worth $453,596,000 after purchasing an additional 654,244 shares during the period. Northern Trust Corp raised its holdings in shares of Copart by 1.1% during the third quarter. Northern Trust Corp now owns 8,931,216 shares of the business services provider’s stock worth $401,637,000 after purchasing an additional 97,411 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of Copart by 3.6% in the 3rd quarter. Bank of America Corp DE now owns 7,586,427 shares of the business services provider’s stock worth $341,162,000 after buying an additional 266,321 shares during the last quarter. 85.78% of the stock is currently owned by institutional investors.

About Copart

Copart, Inc (NASDAQ: CPRT) provides online vehicle auction and remarketing services. The company operates a global marketplace where damaged, recovered, used and other vehicles are sold primarily through online auctions. Its offerings include salvage and clean-title vehicles, with inventory sourced from insurance companies, banks, dealerships, fleet operators, rental companies, government agencies and other organizations.

Copart supports the vehicle remarketing process through inspection, storage, transportation, title processing and auction services.