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Why Is Copart, Inc. (CPRT) Down 0.9% Since Last Earnings Report?

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It has been about a month since the last earnings report for Copart, Inc. (CPRT). Shares have lost about 0.9% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Copart, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Copart Reports Robust Q4 Results

Copart reported fourth-quarter fiscal 2021 (ended Jul 31, 2021) adjusted earnings per share of $1.03, surpassing the Zacks Consensus Estimate of 89 cents. Higher-than-expected revenues from both the company’s segments led to this outperformance. The bottom line also surged 51.5% year over year from 68 cents reported in the prior-year quarter. The online auto auction leader generated revenues of $748.6 million, beating the Zacks Consensus Estimate of $672 million. Also, the top line increased from the year-ago reported figure of $525.6 million.

Gross profit was up 42.7% year over year to $357.5 million. Total operating expenses flared up 39.8% year on year to $447.1 million. General and administrative expenses shot up 14.5% from the prior-year quarter to $39.6 million. Nonetheless, operating income increased to $301.5 million from the year-earlier period’s $205.7 million. Net income came in at $255.9 million compared with the year-ago figure of $165.5 million.

Key Takeaways

Fiscal fourth-quarter service revenues came in at $620 million, up from $457.6 million recorded in the year-earlier period. Service revenues accounted for 83% of the total revenues. The reported figure also surpassed the Zacks Consensus Estimate of $601 million. Vehicle sales summed $128.6 million for the quarter, up from the prior-year level of $67.9 million. The reported figure also surpassed the Zacks Consensus Estimate of $100 million.

Copart had cash and cash equivalents of $1,048.3 million on Jul 31, 2021 compared with $477.7 million as of Jul 31, 2020. Long-term debt and financial lease obligations summed $397.6 million at the end of fiscal fourth-quarter 2021.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 7.85% due to these changes.

VGM Scores

Currently, Copart, Inc. has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Copart, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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