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Copart (CPRT) Surpasses Q4 Earnings and Revenue Estimates

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Copart, Inc. (CPRT - Free Report) reported fourth-quarter fiscal 2020 (ended Jul 31, 2020) adjusted earnings per share of 69 cents, which surpassed the Zacks Consensus Estimate of 39 cents. Higher-than-expected service revenues and vehicle sales led to the outperformance. The bottom line also increased around 8% year over year. Lower year-over-year operating expenses resulted in the improved profits.

Total revenues came in at $525.7 million, topping the Zacks Consensus Estimate of $420 million. However, the top line declined 3.1% year over year.Service revenues came in at $457.7 million, down from $470.4 million recorded in the year-ago quarter. However, the metric beat the consensus mark of $353 million. Service revenues accounted for 87% of total revenues. Vehicle sales totaled $68 million for the quarter, declining from the year-ago level of $72.1 million but surpassing the consensus estimate of $46.19 million.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote

Gross profit was up 3.2% year over year to $250.4 million. Total operating expenses declined 8.5% year over year to $320 million. Notably, general and administrative expenses were down 12.9% from the prior-year quarter to $34.6 million. Resultantly, operating income increased to $205.7 million from $192.8 million reported in the previous year. Net income came in at $165.5 million compared with the year-ago figure of $153.5 million.

The online auto auction leaderhad cash and cash equivalents of $477.7 million as of Jul 31, 2020 compared with $186.3 million on Jul 31, 2019. Long-term debt and financial lease obligations were $397 million, down from $400.1 million as of Jul 31, 2019.

Copart — whose peers include KAR Auctions Services Inc. (KAR - Free Report) , Insurance Auto Auctions aka IAA, Inc.  and Ritchie Bros Auctioneers Incorporated (RBA - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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