mgkaya/E+ via Getty Images Introduction On June 5, I wrote an article titled "From Scrap To Riches - Copart Is An Amazing American Growth Story." Nonetheless, I gave the stock a Neutral rating. As the title suggests, in that article, I discussed the Copart's (NASDAQ:CPRT) fascinating business model, which has resulted in a total return of roughly 1,070% over the past ten years, making it one of the best-performing stocks I have discussed in recent years. Data by YCharts This performance includes its rec ...

Financial Data and Key Metrics Changes - In Q4 2024, global revenue increased to nearly $1.1 billion, representing growth of over $71 million or about 7% year-over-year [14] - For the fiscal year 2024, global revenue increased to more than $4.2 billion, representing growth of over $367 million or nearly 10% [14] - GAAP net income for Q4 decreased by over 7% to over $322 million or $0.33 per diluted common share, while for the fiscal year, GAAP net income increased by over 10% to over $1.4 billion [20] Business Line Data and Key Metrics Changes - Insurance business grew by 6% year-over-year, with total loss frequency increasing by 200 basis points [3][5] - Non-insurance sellers saw a volume growth of 20.4% year-over-year in Q4, while dealer sales volume increased by 9.5% year-over-year [9] - U.S. insurance unit volume increased by 6% year-over-year, while non-insurance unit volume growth outpaced insurance, with fleet rental and finance units increasing over 20% in Q4 [12][13] Market Data and Key Metrics Changes - The Manheim Used Vehicle Value Index declined by 8.6% year-over-year, while Copart's insurance selling prices significantly outpaced the broader used vehicle market [4] - International business unit growth was almost 17% in Q4 and 21% for the fiscal year 2024, with fee units increasing over 17% in Q4 [13] Company Strategy and Development Direction - The company is focused on deepening relationships with insurance clients through services like Title Express, which has gained substantial traction [6][7] - The strategy includes investing in organic product development and expanding the real estate portfolio to enhance operational capabilities [19][22] - The company aims to maintain a conservative capital structure, which is viewed as a competitive advantage in the industry [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the 2024 storm season has been active, which has required significant resource mobilization [8] - The long-term trend of increasing vehicle complexity is expected to favor total loss over repairs, which is beneficial for the company's business model [4][5] - Management expressed confidence in the ongoing growth of the insurance business and the potential for increased activity in a lower interest rate environment [30] Other Important Information - Global average selling prices (ASPs) declined by approximately 5% for Q4 relative to the previous year, but U.S. ASPs showed resilience [14] - The company generated free cash flow of $962 million for the year, reflecting strong operating cash flow generation [22] Q&A Session Summary Question: Impact of financial model changes due to growth initiatives - Management acknowledged that while there are upfront investments for growth, the long-term unit economics should be favorable [25][26] Question: Update on Purple Wave's national expansion - Management indicated that Purple Wave is still in a transitional stage, expanding its geographic footprint [27][28] Question: Effect of lower interest rates on business model - Management speculated that lower interest rates could lead to increased business activity, benefiting intermediaries like Purple Wave [29] Question: Trends in accident frequency and its impact - Management noted that accident frequency has generally declined over the past 50 years, but total loss frequency has outpaced this trend [35][36] Question: Clarification on Title Express service - Management confirmed that Title Express allows insurance companies to alleviate internal costs and improve service levels [37][38] Question: Year-over-year comparison of catastrophic event-related vehicles - Management stated that the volume from catastrophic events was modest, with mobilizations not yielding significant unit volumes [54] Question: Yard operation expense growth drivers - Management explained that increased property taxes and non-recurring expenses contributed to the growth in yard operation costs [56][57] Question: Business mix and demographics of non-insurance customers - Management highlighted the importance of blue car volume and crossover buyers in driving liquidity and selling prices [59][60] Question: Historical framework for fee increases - Management emphasized a focus on delivering value to sellers and buyers, rather than discussing specific fee schedules [61]

Copart, Inc. (CPRT) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.81%. A quarter ago, it was expected that this company would post earnings of $0.38 per share when it actually produced earnings of $0.39, delivering a surprise of 2.63%.Over the last four quarters, the company has ...

Revenue and Income - Revenue for Q4 2024 increased by $71.4 million (7.2%) to $1.1 billion compared to the same period last year[1] - Revenue for the year ended July 31, 2024 increased by $367.3 million (9.5%) to $4.2 billion compared to the same period last year[2] - Net income for Q4 2024 decreased by $25.2 million (7.3%) to $323 million compared to the same period last year[1] - Net income for the year ended July 31, 2024 increased by $125.3 million (10.1%) to $1.4 billion compared to the same period last year[2] - Net income increased to $1,362,347 in 2024 from $1,237,741 in 2023, representing a growth of approximately 10.1%[10] Earnings Per Share - Fully diluted earnings per share for Q4 2024 decreased by 8.3% to $0.33 compared to $0.36 last year[1] - Fully diluted earnings per share for the year ended July 31, 2024 increased by 9.4% to $1.40 compared to $1.28 last year[2] Service and Vehicle Sales - Service revenues for Q4 2024 increased by 7.1% to $893.1 million compared to the same period last year[7] - Vehicle sales for Q4 2024 increased by 7.7% to $175.9 million compared to the same period last year[7] Operating Expenses - Total operating expenses for Q4 2024 increased by 16.9% to $709.5 million compared to the same period last year[7] Cash and Cash Equivalents - Cash, cash equivalents, and restricted cash increased to $1.5 billion as of July 31, 2024, compared to $957.4 million as of July 31, 2023[8] - Cash, cash equivalents, and restricted cash at the end of the period stood at $1,514,111 in 2024, up from $957,395 in 2023, an increase of 58.2%[10] Cash Flow - Net cash provided by operating activities rose to $1,472,564 in 2024 compared to $1,364,210 in 2023, an increase of about 7.9%[10] - Net cash used in investing activities decreased to $940,079 in 2024 from $1,892,049 in 2023, a reduction of 50.3%[10] Depreciation and Amortization - Depreciation and amortization expenses increased to $190,256 in 2024 from $159,684 in 2023, up by 19.1%[10] Property and Equipment - Purchases of property and equipment decreased slightly to $510,990 in 2024 from $516,636 in 2023, a reduction of 1.1%[10] Investments - Investment in held-to-maturity securities surged to $4,087,162 in 2024 from $1,406,588 in 2023, a significant increase of 190.6%[10] - Proceeds from the sale of held-to-maturity securities amounted to $3,645,000 in 2024, with no comparable figure in 2023[10] Taxes and Compensation - Income taxes paid, net of refunds, increased to $285,891 in 2024 from $257,514 in 2023, up by 11.0%[10] - Stock-based compensation decreased to $35,234 in 2024 from $39,673 in 2023, a reduction of 11.2%[10]

Company Performance - Copart, Inc. (CPRT) ended the latest trading session at $52.56, reflecting a -0.38% adjustment from the previous day's close, which lagged behind the S&P 500's 0.32% loss [1] - The company's stock has increased by 3.35% over the past month, outperforming the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52% [1] - The upcoming earnings release is expected to show an EPS of $0.37, representing an 8.82% increase compared to the same quarter last year, with projected revenue of $1.07 billion, reflecting a 7.4% rise from the equivalent quarter last year [1] Analyst Estimates - Recent adjustments to analyst estimates for Copart, Inc. indicate the dynamic nature of near-term business trends, with positive revisions suggesting optimism about the company's outlook [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks generating an average annual return of +25% since 1988; currently, Copart, Inc. holds a Zacks Rank of 3 (Hold) [2] Valuation and Industry Position - Copart, Inc. is trading at a Forward P/E ratio of 32.84, which aligns with the average Forward P/E of 32.84 for its industry [3] - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [3] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for growth within the industry [3]

Group 1 - Copart, Inc. (CPRT) ended the latest trading session at $51.59, reflecting a +0.55% change from the previous close, which was lower than the S&P 500's daily gain of 0.97% [1] - Over the past month, shares of Copart, Inc. have decreased by 0.77%, outperforming the Business Services sector's decline of 1.72% and the S&P 500's drop of 1.85% [1] - The upcoming earnings disclosure for Copart, Inc. is anticipated, with projected EPS of $0.37, indicating an 8.82% increase year-over-year, and net sales estimated at $1.07 billion, up 7.4% from the previous year [1] Group 2 - Recent changes to analyst estimates for Copart, Inc. are important for investors, as they reflect the evolving business trends and analysts' outlook on the company's health and profitability [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that Copart, Inc. currently holds a Zacks Rank of 3 (Hold) [2] - The Zacks Consensus EPS estimate for Copart, Inc. has remained unchanged over the past month [2] Group 3 - Copart, Inc. has a Forward P/E ratio of 31.94, which is consistent with the average Forward P/E for its industry [3] - The Auction and Valuation Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 98, placing it in the top 39% of over 250 industries [3] - The Zacks Industry Rank evaluates the performance of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3]

Group 1 - Copart, Inc. closed at $50.97, reflecting a +1.41% change, which was lower than the S&P 500's gain of 1.69% [1] - Over the past month, Copart's shares have decreased by 8.15%, while the Business Services sector and S&P 500 lost 3.4% and 4.78%, respectively [1] - The upcoming earnings report is expected to show an EPS of $0.37, representing an 8.82% increase year-over-year, with quarterly revenue projected at $1.07 billion, up 7.4% from the previous year [1] Group 2 - Recent adjustments to analyst estimates for Copart, Inc. can indicate changing business trends, with positive revisions seen as favorable for the company's outlook [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks rated 1 have produced an average annual return of +25% since 1988 [2] - Currently, Copart, Inc. holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [2] Group 3 - Copart, Inc. has a Forward P/E ratio of 31.28, which aligns with the industry average, suggesting no significant deviation in valuation [3] - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 96, placing it in the top 38% of over 250 industries [3] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the strength of the industry [3]

In the latest trading session, Copart, Inc. (CPRT) closed at $49.18, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 1.05%.Coming into today, shares of the company had lost 8.78% in the past month. In that same time, the Business Services sector lost 4.16%, while the S&P 500 lost 5.85%.Investors will be eagerly watching for the performance of Copart, Inc. in i ...

Group 1 - Copart, Inc. (CPRT) closed at $51.05, with a daily gain of +1.23%, outperforming the S&P 500's gain of 1.11% [1] - The stock has decreased by 7.91% over the past month, underperforming the Business Services sector's loss of 2.82% and the S&P 500's loss of 1.16% [1] - Analysts expect Copart, Inc. to report earnings of $0.37 per share, reflecting year-over-year growth of 8.82%, and revenue of $1.07 billion, a 7.4% increase from the same quarter last year [1] Group 2 - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.43 per share and revenue of $4.24 billion, indicating changes of +13.49% and +9.55% from the previous year [2] - Recent changes to analyst estimates for Copart, Inc. reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [2] Group 3 - Copart, Inc. currently holds a Zacks Rank of 3 (Hold), with no change in the Zacks Consensus EPS estimate over the past month [3] - The company has a Forward P/E ratio of 35.18, which is in line with the industry's average Forward P/E of 35.18 [3] - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [3] Group 4 - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Company Performance - Copart, Inc. (CPRT) closed at $51.71, with a slight increase of +0.12%, outperforming the S&P 500's loss of 0.71% [1] - Over the past month, shares have decreased by 4.37%, underperforming the Business Services sector's loss of 3.02% and the S&P 500's gain of 1.08% [1] - The upcoming earnings disclosure is expected to show an EPS of $0.37, reflecting an 8.82% increase from the same quarter last year, with revenue anticipated at $1.07 billion, a 7.4% increase year-over-year [1] Full Year Estimates - For the full year, earnings are projected at $1.43 per share and revenue at $4.24 billion, indicating increases of +13.49% and +9.55% respectively from the previous year [2] - Recent changes in analyst estimates are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [2] Valuation and Industry Ranking - Copart, Inc. has a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [3] - The company is currently trading at a Forward P/E ratio of 36.03, which aligns with the industry's average Forward P/E [3] - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 242, placing it in the bottom 4% of over 250 industries [3]