Shares of Copart, Inc. (CPRT) , a provider of online vehicle auction and remarketing services to automotive resellers, have lost 10.3% in the past six months compared with the Zacks Auction and Valuation Services industry's decline of 10.8%. Shares of CPRT underperformed peers like ACV Auctions Inc. and OPENLANE, Inc. in the same time frame.Six Months Price ComparisonImage Source: Zacks Investment ResearchHigh spending on storage-capacity expansion and rising operating costs amid increasing G&A expenditure ...

Core Viewpoint - The average brokerage recommendation (ABR) for Copart, Inc. (CPRT) is 2.00, indicating a Buy, but reliance solely on this metric may not be prudent due to potential biases in brokerage recommendations [1][2]. Group 1: Brokerage Recommendations - Copart has an ABR of 2.00, with 50% of the eight recommendations being Strong Buy [1]. - Studies indicate that brokerage recommendations often show limited success in guiding investors towards stocks with the best price increase potential [2]. - Brokerage firms tend to exhibit a strong positive bias, issuing five Strong Buy recommendations for every Strong Sell [2][3]. Group 2: Zacks Rank vs. ABR - Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) based on earnings estimate revisions, differing from the ABR which is based solely on brokerage recommendations [4][5]. - The Zacks Rank is timely and reflects the latest earnings estimate revisions, while the ABR may not be up-to-date [6]. Group 3: Current Earnings Estimates for Copart - The Zacks Consensus Estimate for Copart has declined by 4.4% over the past month to $1.54, indicating growing pessimism among analysts regarding the company's earnings prospects [7]. - The decline in the consensus estimate has resulted in a Zacks Rank of 5 (Strong Sell) for Copart, suggesting caution despite the Buy-equivalent ABR [7].

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]

The latest trading session saw Copart, Inc. (CPRT) ending at $52.56, denoting a -0.38% adjustment from its last day's close. This change lagged the S&P 500's 0.32% loss on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.85%.The company's stock has climbed by 3.35% in the past month, exceeding the Business Services sector's gain of 0.64% and the S&P 500's gain of 1.52%.The investment community will be paying close attention to the earnings performance of Copart, Inc. in i ...

The latest trading session saw Copart, Inc. (CPRT) ending at $51.59, denoting a +0.55% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.39%.Heading into today, shares of the company had lost 0.77% over the past month, outpacing the Business Services sector's loss of 1.72% and the S&P 500's loss of 1.85% in that time.Analysts and investors alike will be keeping a close eye on the perf ...

Copart, Inc. (CPRT) closed the latest trading day at $50.97, indicating a +1.41% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.69%. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 2.43%.Coming into today, shares of the company had lost 8.15% in the past month. In that same time, the Business Services sector lost 3.4%, while the S&P 500 lost 4.78%.The investment community will be paying close attention to the earnings performanc ...

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 ...