Copart Q2 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Copart, Inc. reported adjusted earnings per share of 40 cents for the second quarter of fiscal 2025, exceeding the Zacks Consensus Estimate of 38 cents, with a year-over-year increase of 21.2% [1] - The company generated revenues of $1.16 billion, surpassing the Zacks Consensus Estimate of $1.14 billion, reflecting a 14% increase from the previous year [1] Revenue Breakdown - Service revenues for the fiscal second quarter reached $991.3 million, up from $861.7 million in the prior year, matching the Zacks Consensus Estimate, and accounting for 85.2% of total revenues [2] - Vehicle sales totaled $172 million, an increase from $158.4 million in the same quarter last year, also exceeding the Zacks Consensus Estimate of $161 million [2] Expense Analysis - Facility operations expenses rose 19.9% year over year to $439.3 million, while the cost of vehicle sales increased by 0.6% to $147.7 million [3] - Facility depreciation and amortization expenses were $48.9 million, up 18.8% year over year, and general and administrative expenses rose 19.2% to $86.6 million [3] Profitability Metrics - Gross profit increased by 13.2% year over year to $525.6 million, with total operating expenses rising 15.1% to $737.1 million [3] - Operating income grew to $426.2 million from $379 million in the prior year, and net income increased by 18.7% year over year to $386.5 million [4] Cash Position - As of January 31, 2025, Copart had cash, cash equivalents, and restricted cash totaling $3.34 billion, a significant increase from $1.5 billion as of July 31, 2024 [4] - Net cash from operating activities and capital expenditures during the first half of fiscal 2025 amounted to $660.4 million and $353.4 million, respectively [4]