Group 1: Earnings Performance - Copart, Inc. reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, and an increase from $0.34 per share a year ago [1] - The company posted revenues of $1.15 billion for the quarter ended October 2024, exceeding the Zacks Consensus Estimate by 3.60%, compared to $1.02 billion in the same quarter last year [2] - Over the last four quarters, Copart has surpassed consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Copart shares have increased approximately 13.1% since the beginning of the year, while the S&P 500 has gained 24.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $1.12 billion, and for the current fiscal year, it is $1.54 on revenues of $4.6 billion [8] - The estimate revisions trend for Copart is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] Group 3: Industry Context - The Auction and Valuation Services industry, to which Copart belongs, is currently in the top 1% of over 250 Zacks industries, suggesting a strong outlook for the sector [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Exhibit 99.1 Copart, Inc. For Immediate Release Copart Reports First Quarter Fiscal 2025 Financial Results Dallas, Texas November 21, 2024 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2024. For the three months ended October 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.15 billion, $512.1 million, and $362.1 million, respectively. These represent an increase in revenue of $126.4 million, or 12.4%; an increase in gross ...

Group 1 - The latest trading session for Copart, Inc. (CPRT) ended at $52.45, reflecting a +1.85% change, outperforming the S&P 500's loss of 0.28% [1] - The stock has decreased by 2.67% over the past month, underperforming the Business Services sector's gain of 1.14% and the S&P 500's gain of 0.41% [1] Group 2 - Copart, Inc. is expected to report an EPS of $0.37, representing an 8.82% increase from the prior-year quarter, with projected net sales of $1.09 billion, up 7.2% year-over-year [2] - For the entire year, the forecasted earnings are $1.54 per share and revenue of $4.6 billion, indicating increases of +10% and +8.66% respectively compared to the previous year [2] Group 3 - Recent changes to analyst estimates for Copart, Inc. are important as they reflect the evolving business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which assesses estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [4][5] Group 4 - Copart, Inc. has a Forward P/E ratio of 33.51, which aligns with the industry's average Forward P/E of 33.51 [6] - The Auction and Valuation Services industry, part of the Business Services sector, currently ranks 236 in the Zacks Industry Rank, placing it in the bottom 7% of over 250 industries [6][7]

Investors in Copart, Inc. (CPRT) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $80 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

The auto/tires/trucks sector has been in a slump, as evidenced by weaker results and forecasts from manufacturers like Ford Motor Co. NYSE: F and Stellantis NYSE: STLA. High financing costs and an uncertain macroeconomic climate have caused consumers to tighten their spending, especially on big-ticket items like cars. However, not every part of the automobile industry is in a slump. The auto aftermarket of used cars and car parts is still thriving, and some companies are capitalizing on the action. Here are ...

Core Viewpoint - Copart, Inc. reported mixed financial results for Q4 fiscal 2024, with earnings per share missing expectations while revenues exceeded estimates, leading to questions about future performance and potential pullbacks [2][4]. Financial Performance - Adjusted earnings per share for Q4 fiscal 2024 were 33 cents, missing the Zacks Consensus Estimate of 37 cents, and down from 34 cents per share a year ago [2]. - Total revenues reached $1.07 billion, surpassing the Zacks Consensus Estimate by 0.39%, and increased from $997.59 million in the previous year [2]. - Service revenues were $893 million, up from $834 million year-over-year, accounting for 83.5% of total revenues [3]. - Vehicle sales totaled $175.9 million, an increase from $163.3 million in the prior year [3]. - Gross profit decreased by 0.9% year-over-year to $453.6 million, while general and administrative expenses rose by 46.6% to $81.3 million [3]. - Operating income fell to $360 million from $390.6 million year-over-year, and net income declined by 7.4% to $322.2 million [3]. - As of July 31, 2024, the company had cash and cash equivalents of $1.51 billion, compared to $957.4 million a year earlier [3]. Market Sentiment - There has been a downward trend in estimates revisions for Copart, indicating a negative sentiment among investors [4]. - The company currently holds a subpar Growth Score of D and a Momentum Score of F, with an overall VGM Score of F, placing it in the fifth quintile for investment strategies [5]. - The stock has a Zacks Rank of 5 (Strong Sell), suggesting expectations of below-average returns in the coming months [6].

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Financial Performance - Service revenues for fiscal 2024 increased by $362.9 million, or 11.3%, compared to fiscal 2023, driven by a $284.5 million increase in the U.S. and a $78.4 million increase internationally[165]. - Total vehicle sales for fiscal 2024 increased by $4.4 million, or 0.7%, compared to fiscal 2023, with a decrease of $9.4 million in the U.S. offset by an increase of $13.8 million internationally[166]. - Operating income for fiscal 2024 was 37% of total revenues, down from 39% in fiscal 2023[163]. - Total operating expenses for fiscal 2024 increased to 63% of total revenues, compared to 61% in both fiscal 2023 and 2022[163]. - Net income for fiscal 2024 was 32% of total revenues, a decrease from 34% in fiscal 2023[163]. - International service revenues grew by 22.0% in fiscal 2024 compared to fiscal 2023, reaching $434.9 million[164]. - U.S. service revenues increased by 10.0% in fiscal 2024 compared to fiscal 2023, totaling $3,126.1 million[164]. - Vehicle sales totaled $675.8 million in fiscal 2024, slightly up from $671.4 million in fiscal 2023, indicating a growth of 0.6%[198]. Operational Developments - The company processed 81%, 83%, and 80% of total vehicles from insurance company sellers in fiscal years 2024, 2023, and 2022 respectively[147]. - The average age of cars on the road increased from 11.1 years in 2012 to 12.6 years in 2024, indicating a growing market for salvage vehicles[151]. - The company acquired a controlling interest in Purple Wave, an online offsite heavy equipment auction company, in October 2023[161]. - The company plans to expand its operations by acquiring and developing additional vehicle storage facilities in key markets, including foreign markets[162]. - The company aims to increase service offerings and pursue global, national, and regional vehicle seller agreements to boost revenues and profitability[162]. - The company operates in multiple countries including the U.S., U.K., Germany, Brazil, and Canada, providing a wide geographic service area[144]. Revenue and Cost Analysis - The company’s revenue is influenced by factors such as total loss frequency, average vehicle auction selling price, and used car pricing[151]. - The company’s auction and auction-related service revenues are recognized at the time of auction based on fees charged, not the gross vehicle selling price[150]. - Yard operations expenses for fiscal 2024 increased by $192.1 million, or 12.7%, compared to fiscal 2023, with a significant increase in the U.S. of $148.2 million[167]. - Cost of vehicle sales for fiscal 2024 increased by $5.0 million, or 0.8%, compared to fiscal 2023, with a decrease of $13.3 million in the U.S. and an increase of $18.3 million internationally[169]. - General and administrative expenses increased by $84.8 million, or 33.9%, in fiscal 2024 compared to fiscal 2023, primarily due to a $80.3 million increase in the U.S. and a $4.5 million increase internationally[170]. Cash Flow and Liquidity - The company’s liquidity is primarily derived from cash operating results and revolving credit commitments under its credit agreement[153]. - Cash, cash equivalents, and restricted cash increased by $556.7 million to $1.5 billion as of July 31, 2024, primarily due to cash generated from operations and stock option exercises[176]. - Working capital rose by $1,019.8 million, or 36.8%, to $3.79 billion as of July 31, 2024, reflecting improved cash generation and timing of cash receipts[176]. - Operating cash flows increased by $108.4 million, or 7.9%, to $1.47 billion in fiscal 2024 compared to fiscal 2023, driven by higher service and vehicle sales revenues[176]. - Net cash used in investing activities decreased by $951.9 million, or 50.3%, in fiscal 2024 compared to fiscal 2023, primarily due to proceeds from the sale of held-to-maturity securities[182]. - The company plans to continue using cash flows from operations to finance working capital needs and business growth, with potential for additional cash through a Revolving Loan Facility or equity issuance[177]. - As of July 31, 2024, $180.5 million of the $1.5 billion in cash and equivalents was held by foreign subsidiaries, with no immediate plans for repatriation[180]. - The company did not repurchase any shares under its stock repurchase program in fiscal 2024, maintaining a total of 325,803,208 shares available for future repurchase[184]. - As of July 31, 2024, the company had $0.0 million outstanding borrowings under the Revolving Loan Facility, down from $11.0 million in the previous year[187]. Tax and Other Income - Total other income for fiscal 2024 rose by $74.8 million, or 110.4%, compared to fiscal 2023, mainly driven by higher interest income from U.S. Treasury Bills and gains on the sale of fixed assets[172]. - The effective income tax rate for fiscal 2024 was 20.5%, slightly up from 20.4% in fiscal 2023, influenced by tax adjustments and excess tax benefits from employee stock options[173]. Internal Controls and Compliance - The company's disclosure controls were effective at the reasonable assurance level as of July 31, 2024[211]. - Management assessed the effectiveness of internal control over financial reporting as of July 31, 2024, concluding that effective controls were maintained[213]. - Ernst & Young LLP issued an unqualified opinion on the company's internal control over financial reporting as of July 31, 2024[217]. - There were no changes in internal control over financial reporting during the quarter ended July 31, 2024, that materially affected the controls[214]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[220]. - The company maintained effective internal control over financial reporting based on the COSO criteria[217]. - The evaluation of internal control effectiveness is subject to inherent limitations and may not prevent or detect misstatements[221]. Future Plans and Governance - The company plans to file a definitive proxy statement for the 2024 Annual Meeting of Stockholders within 120 days after the fiscal year-end[225]. - No directors or officers adopted or terminated any trading arrangements during the three months ended July 31, 2024[223].

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].