Copart, Inc. CPRT delivered a comprehensive beat in first-quarter fiscal 2020 (ended Oct 31), wherein it managed to surpass earnings and revenue estimates. Rising service revenues across markets served by the company and expanding network of facilities have aided the results.
The Texas-based online vehicle auctioning company reported adjusted earnings per share of 65 cents, surpassing the Zacks Consensus Estimate of 59 cents and increasing from the year-ago figure of 47 cents. Markedly, this is the fifth consecutive earnings beat for the company. Higher-than-expected service revenues led to the outperformance. Precisely, service revenues came in at $487.8 million, outpacing the consensus estimate of $462 million.
Copart, Inc. Price, Consensus and EPS Surprise
Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote
Total revenues came in at $554.4 million, surpassing the Zacks Consensus Estimate of $531 million. The top line was also 20.2% higher than the year-ago figure of $461.4 million. While service revenues accounted for nearly 88% of total revenues, vehicle sales totaled $66.5 million during the quarter under review, almost flat with the year-ago level.
Gross profit was up roughly 30% year over year to $254.8 million. Total operating expenses rose to $349 million from $309.9 million recorded in the prior-year period. Operating income increased to $205.4 million from $151.4 million reported a year ago.
Copart — whose peers include Ritchie Bros. Auctioneers Incorporated RBA, Byd Co., Ltd. BYDDY and Liquidity Services Inc. LQDT — had cash and cash equivalents of $181.1 million as of Oct 31, 2019. Long-term debt, revolving loan facility and capital lease obligations were $400 million. Its debt-to-capital ratio stands at 17.2%. During the quarter, the Zacks Rank #2 (Buy) firm generated net cash flow of $212.4 million from operations compared with $107.7 million in the prior-year period. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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