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Copart (CPRT) Q4 Earnings Coming Up: What's in the Cards?

Copart, Inc. CPRT is set to release fourth-quarter fiscal 2022 results on Sep 7, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is $1.08 and $873.2 million, respectively.

The Zacks Consensus Estimate for quarterly revenues indicates a 16.7% rise year over year. The Zacks Consensus Estimate for fiscal fourth-quarter earnings has remained stable over the past 90 days. The bottom-line forecast calls for an increase of 4.9% year over year.

In the last reported quarter, this Texas-based online vehicle auctioning company posted earnings beat on higher-than-expected vehicle sales and service revenues. The bottom line also edged up 7.3% year over year. Copart surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 7.8%.

Copart, Inc. Price and EPS Surprise

Copart, Inc. Price and EPS Surprise
Copart, Inc. Price and EPS Surprise

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

Factors at Play

Copart’s active presence in the United States and international markets is likely to have bolstered the firm’s performance during the to-be-reported quarter. The Zacks Consensus Estimate for service revenues is pegged at $738 million, indicating an uptick of 19% year over year. Also, the consensus mark for vehicle sales is $171 million, calling for a rise from $129 million reported in the prior-year quarter.

Copart’s buyout of Kentucky-based online auctioning platform, Vincent Auto Solutions, strengthened its footprint in Western Kentucky and is likely to have contributed to sales during the quarter to be reported.  The launch of Copart Max has stepped up its digital game. Robust demand for vehicle remarketing services and higher average selling prices from international online bidders would also reflect positively on its upcoming results.

Yet, rising operating expenses and high storage and labor costs are expected to have dented margins. Also, increased investments due to business expansion are likely to have clipped Copart’s bottom line to some extent.

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, which is not the case here.

Earnings ESP: It has an Earnings ESP of 0.00%. 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 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Copart’s peers include KAR Auctions Services Inc. KAR and Insurance Auto Auctions, aka IAA, Inc. IAA.

KAR Auctions reported fiscal second-quarter 2022 results on Aug 2. It incurred an adjusted loss of 4 cents a share, which widened from 3 cents a share in the year-ago period. The Zacks Consensus Estimate for second-quarter 2022 earnings was pegged at 8 cents a share. Revenues of $384 million rose 2% year over year and came ahead of the consensus mark of $376 million.

During the quarter, KAR completed the sale of its ADESA U.S. physical auction business to Carvana. The proceeds from the transaction are being used to reduce debt. KAR exited the quarter with $804 million of cash and cash equivalents. It bought back shares worth $82 million in the second quarter.

Insurance Auto reported second-quarter 2022 results on Aug 9. It posted adjusted earnings of 62 cents a share, topping the Zacks Consensus Estimate of 55 cents. The bottom line, however, deteriorated from earnings of 69 cents in the year-ago period.  Revenues of $520.3 million rose 16.9% year over year but fell short of the consensus mark of $523 million.

This Illinois-based auto auction company envisions fiscal 2022 revenues in the band of $2.02-$2.075 billion. Total adjusted EBITDA is forecast between $540 million and $560 million. Insurance Auto exited the quarter with cash and cash equivalents of $137.6 million.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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