Why Is Copart (CPRT) Up 5.4% Since Last Earnings Report?

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].