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Copart (CPRT) Gears Up for Q4 Earnings: Things to Consider
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Copart, Inc. (CPRT - Free Report) is set to release fourth-quarter fiscal 2023 results on Sep 14, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is 31 cents and $950 million, respectively.
The Zacks Consensus Estimate for quarterly revenues indicates a 7.5% rise year over year. The Zacks Consensus Estimate for fiscal fourth-quarter earnings has remained stable over the past 60 days. The bottom-line forecast calls for an increase of 10.7% year over year.
In the last reported quarter, this Texas-based online vehicle auctioning company topped earnings estimates on higher-than-anticipated service revenues. The bottom line also increased 24.1% year over year. Over the trailing four quarters, Copart surpassed the Zacks Consensus Estimate thrice and missed once, the average surprise being 5.61%.
Salvage auction volumes are likely to have remained elevated amid increased vehicle miles traveled and higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts might positively impact Copart’s results. The costs of replacing such sophisticated components are extremely high, prompting insurance agencies to declare the vehicles as total loss. An expected increase in total loss rates is expected to have aided Copart’s top line.
Copart’s active presence in the United States and international markets is likely to have bolstered the firm’s performance in the to-be-reported quarter. Expansion initiatives, along with digital ramp-up, are likely to have aided Copart’s sales. We expect service revenues of $784.8 million, indicating an uptick of 10.9% year over year.
On the flip side, rising operating expenses and high storage and labor costs are expected to have dented margins. Operating costs have also been on the rise for several quarters amid increasing G&A expenditure. In the last reported quarter, the company’s G&A expenditure increased 4.4% year over year. We expect the metric to witness a 9% yearly increase in the quarter to be reported, thereby denting margins.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Copart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of earnings is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
OPENLANE, Inc. (KAR - Free Report) came out with second-quarter 2023 on Aug 2. It reported quarterly earnings of 25 cents per share, beating the Zacks Consensus Estimate of 14 cents. In the year-ago period, the company had incurred a loss of 4 cents per share. In the last four quarters, the company surpassed the consensus estimate thrice and missed it once.
KAR posted revenues of $416.9 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 1.14%. Revenues, however, grew from $384.2 million reported in the year-ago period.
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Copart (CPRT) Gears Up for Q4 Earnings: Things to Consider
Copart, Inc. (CPRT - Free Report) is set to release fourth-quarter fiscal 2023 results on Sep 14, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is 31 cents and $950 million, respectively.
The Zacks Consensus Estimate for quarterly revenues indicates a 7.5% rise year over year. The Zacks Consensus Estimate for fiscal fourth-quarter earnings has remained stable over the past 60 days. The bottom-line forecast calls for an increase of 10.7% year over year.
In the last reported quarter, this Texas-based online vehicle auctioning company topped earnings estimates on higher-than-anticipated service revenues. The bottom line also increased 24.1% year over year. Over the trailing four quarters, Copart surpassed the Zacks Consensus Estimate thrice and missed once, the average surprise being 5.61%.
Copart, Inc. Price and EPS Surprise
Copart, Inc. price-eps-surprise | Copart, Inc. Quote
Things to Consider
Salvage auction volumes are likely to have remained elevated amid increased vehicle miles traveled and higher collision frequency. Additionally, aging vehicles and technologically advanced auto parts might positively impact Copart’s results. The costs of replacing such sophisticated components are extremely high, prompting insurance agencies to declare the vehicles as total loss. An expected increase in total loss rates is expected to have aided Copart’s top line.
Copart’s active presence in the United States and international markets is likely to have bolstered the firm’s performance in the to-be-reported quarter. Expansion initiatives, along with digital ramp-up, are likely to have aided Copart’s sales. We expect service revenues of $784.8 million, indicating an uptick of 10.9% year over year.
On the flip side, rising operating expenses and high storage and labor costs are expected to have dented margins. Operating costs have also been on the rise for several quarters amid increasing G&A expenditure. In the last reported quarter, the company’s G&A expenditure increased 4.4% year over year. We expect the metric to witness a 9% yearly increase in the quarter to be reported, thereby denting margins.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Copart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: It has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate of earnings is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Copart currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Release
OPENLANE, Inc. (KAR - Free Report) came out with second-quarter 2023 on Aug 2. It reported quarterly earnings of 25 cents per share, beating the Zacks Consensus Estimate of 14 cents. In the year-ago period, the company had incurred a loss of 4 cents per share. In the last four quarters, the company surpassed the consensus estimate thrice and missed it once.
KAR posted revenues of $416.9 million for the quarter ended June 2023, missing the Zacks Consensus Estimate by 1.14%. Revenues, however, grew from $384.2 million reported in the year-ago period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.