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Dallas, Texas-based Copart, Inc. (CPRT) provides online auctions and a wide range of remarketing services to process and sell salvage and clean title vehicles. With a market cap of $55.6 billion, the company offers services such as online supplier access, salvage estimation services, end-of-life vehicle processing, virtual insured exchange, transportation services, and vehicle inspection stations, among others. It is expected to announce its fiscal Q2 earnings results on Thursday, Feb. 27.
Prior to this event, analysts expect the automobile reseller to report a profit of $0.38 per share, up nearly 15.2% from $0.33 per share in the year-ago quarter. The company has surpassed or met Wall Street's earnings estimates in two of the last four quarters while missing on other two occasions. Its earnings of $0.37 per share in the previous quarter met the consensus estimates.
For fiscal 2025, analysts project Copart to report an EPS of $1.57, up 12.1% from a profit of $1.40 in fiscal 2024.
Shares of Copart have gained 19.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 22.9% return and the Industrial Select Sector SPDR Fund’s (XLI) 22.7% rise over the same time frame.
Copart released its Q1 earnings results on Nov. 21, and shares of CPRT surged 10.2% on the subsequent day. The company’s adjusted EPS of $0.37 per share improved 8.8% year-over-year and aligned with the consensus estimates. Meanwhile, its revenue grew 12.4% from the year-ago quarter to $1.2 billion and exceeded the forecasted figure by 3.6%.
Robust growth in its service revenues aided the results. Moreover, despite a 14.5% rise in total operating expenses, CPRT’s operating income increased 18.5% annually to $740.5 million, thanks to robust top-line growth and higher gross profit fueled by a 6.6% lower cost of vehicle sales. This might have further bolstered investor confidence.
Wall Street analysts are moderately optimistic about Copart’s stock, with a "Moderate Buy" rating overall. Among seven analysts covering the stock, four recommend "Strong Buy," and three suggest “Hold.” This configuration is slightly more bullish than three months ago, with three analysts suggesting a “Strong Buy.”
The mean price target for CPRT is $64.83, which indicates a modest 12.5% potential upside from the current levels.
