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Copart (CPRT) Q4 Earnings & Revenues Top Estimates, Up Y/Y

Zacks Equity Research

Copart, Inc. CPRT reported adjusted earnings per share of 60 cents in fourth-quarter fiscal 2019 (ended Jul 31, 2019), surpassing the Zacks Consensus Estimate of 57 cents. The bottom-line figure also surged 42.8% year over year.

Including one-time items, earnings per share came in at 64 cents in the July-end quarter, up from the 45 cents in the comparable period last year.
Net income was $153.5 million, reflecting an increase of 39.9% from fourth-quarter fiscal 2018.

For fiscal 2019, Copart reported adjusted earnings per share of $2.25, up from the prior-year figure of $1.73. Earnings also beat the Zacks Consensus Estimate of $2.21. In fiscal 2019, revenues came in at $2 billion, up from the fiscal 2018 figure of $1.8 billion and in line with the Zacks Consensus Estimate.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. Price, Consensus and EPS Surprise

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

Operational Update

 

In the fiscal fourth quarter, Copart’s revenues jumped 20.8% to $542.6 million from the year-ago quarter tally. Further, revenues surpassed the Zacks Consensus Estimate of $507 million. Service revenues increased to $470.4 million, year on year, from $391.7 million. Revenues from vehicle sales were $72 million compared with the $57 million recorded in fourth-quarter fiscal 2018.

Gross profit was up 28.8% year over year to $242.6 million. Total operating expenses flared up to $349.7 million from $314.3 million recorded in the prior-year period. Operating income increased to $192.8 million from $134.8 million reported a year ago.

Financial Details

Copart had cash and cash equivalents of $186.3 million as of Jul 31, 2019, compared with $274.5 million as of Jul 31, 2018. Long-term debt, revolving loan facility and capital lease obligations were $400 million as of Jul 31, 2019, up from $399 million as of Jul 31, 2018.

In fiscal 2019, Copart generated net cash flow of $647 million from operations compared with $535 million in the prior fiscal.

Zacks Rank & Stocks to Consider

Currently, Copart carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Business Services sector are Booz Allen Hamilton Holding Corporation BAH, Clean Harbors, Inc. CLH and Diebold Nixdorf, Incorporated DBD, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Booz Allen Hamilton has a projected earnings growth rate of 10.8% for the current year. The stock has gained 46.5% in a year’s time.

Clean Harbors has an estimated earnings growth rate of 53.9% for 2019. The company’s shares have rallied 7.7% in the past year.

Diebold Nixdorf has an expected earnings growth rate of 113.6% for the ongoing year. The stock has appreciated 141.2% over the past year.

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