Copart, Inc. (NASDAQ:CPRT) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates
It's been a good week for Copart, Inc. (NASDAQ:CPRT) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.9% to US$51.38. Revenues of US$1.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.33, missing estimates by 3.5%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Copart
Taking into account the latest results, the current consensus from Copart's twelve analysts is for revenues of US$4.23b in 2024. This would reflect a modest 4.2% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$1.44, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$4.24b and earnings per share (EPS) of US$1.47 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at US$52.90, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Copart at US$59.00 per share, while the most bearish prices it at US$39.10. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Copart's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% annually. So it's pretty clear that, while Copart's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Copart. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Copart going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Copart has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
