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Headquartered in Dallas, Texas, Copart, Inc. (CPRT) operates a leading online auction platform and delivers comprehensive remarketing solutions for both salvage and clean title vehicles. Boasting a market capitalization of $57.8 billion, the company’s diverse service offerings include online access for suppliers, salvage estimation, end-of-life vehicle processing, virtual exchanges for insurers, transportation logistics, and vehicle inspection stations, among others.
The automobile reseller is expected to announce its fiscal Q3 earnings results on Thursday, May 15. Prior to this event, analysts expect CPRT to report a profit of $0.42 per share, up nearly 7.7% from $0.39 per share in the year-ago quarter. The company has surpassed or met Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2025, analysts project Copart to report an EPS of $1.58, up 12.9% from a profit of $1.40 in fiscal 2024.
Shares of Copart have gained 7.3% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 8.4% return but surpassing the Industrial Select Sector SPDR Fund’s (XLI) 5.5% rise over the same time frame.
Copart posted strong second-quarter results on Feb. 21, yet its shares slipped 2.8%. Revenue surged 14% year over year to nearly $1.2 billion, while earnings per share reached $0.40, beating Wall Street expectations. The company also reported solid gains in profitability, with gross profit rising 13.2% to $525.6 million and net income climbing 19% to $387.4 million. Despite these upbeat figures, a 15.1% jump in operating expenses to $737.1 million weighed on margins, limiting operating income growth to 12.2% at $426.2 million.
Wall Street analysts are moderately optimistic about Copart’s stock, with a "Moderate Buy" rating overall. Among eight analysts covering the stock, four recommend "Strong Buy," and four suggest “Hold.”
The mean price target for CPRT is $65, which indicates a modest 8.7% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
