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Copart (CPRT) Q2 Earnings Surpass Estimates, Improve Y/Y

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Copart, Inc. (CPRT - Free Report) reported adjusted earnings per share of 52 cents in second-quarter fiscal 2019 (ended January 31, 2019), beating the Zacks Consensus Estimate of 51cents.  In the year-ago quarter, the bottom line was 47 cents.

Net income was $131.4 million, reflecting an increase of 27.2% or $28.1 million from second-quarter fiscal 2018.

Copart’s revenues rose 5.6% to $484.9 million from the year-ago quarter. However, revenues missed the Zacks Consensus Estimate of $494.3 million. Compared with the prior-year quarter, service revenues increased to $416.8 million from $402 million. Revenues from vehicle sales were $68.1 million in comparison with $57.2 million in second-quarter fiscal 2018.

Gross profit improved to $208.2 million from $191.6 million a year ago. Total operating expenses increased to $320.2 million from $308.2 million recorded in the prior-year period.

Operating income increased to $164.7 million from $150.9 million a year ago.

Copart, Inc. Price, Consensus and EPS Surprise

 

Copart, Inc. Price, Consensus and EPS Surprise | Copart, Inc. Quote

Financial Details

Copart had cash and cash equivalents of $108.2 million as of Jan 31, 2019, compared with $274.5 million as of Jul 31, 2018. Long-term debt, revolving loan facility and capital lease obligations were $398.7 million as of Jan 31, 2019, similar to the figure recorded on Jul 31, 2018.

At the end of the first six months of fiscal 2019, Copart generated net cash flow of $215.2 million from operations compared with $180.9 million in the year-ago period.

Zacks Rank & Key Picks

Copart currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the auto space are Garrett Motion Inc. (GTX - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Garrett Motion currently sports a Zacks Rank #1 (Strong Buy), both Oshkosh and General Motors has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Garrett Motion has an expected long-term growth rate of 25.5%. Over the past three months, shares of the company have risen 29.8%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have increased 18.2%.

General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 11.4%.

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