Copart (CPRT) Q3 Earnings & Sales Miss Estimates, Down Y/Y

Copart, Inc. CPRT reported third-quarter fiscal 2020 (ended Apr 30, 2020) adjusted earnings per share of 58 cents, missing the Zacks Consensus Estimate of 64 cents. The figure also came in lower than the year-ago number of 66 cents.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote

Total revenues came in at $550.4 million, missing the Zacks Consensus Estimate of $554 million. The top line also came in 0.5% lower than the year-ago figure of $553.1 million.

Service revenues came in at $491.6 million, up from the $473.7 million recorded in the year-ago quarter. Service revenues accounted for 89.3% of total revenues. Vehicle sales totaled $58.8 million during the quarter, down from the year-ago level of $79.4 million.

Gross profit was down 3.6% year over year to $242.6 million. Total operating expenses flared up to $355.2 million from the $345.6 million incurred in the prior-year period. Operating income decreased to $195.1 million from the $207.5 million reported in the previous year.Net income came in at $147.5 million, down 23.5% from the year-ago figure of $192.7 million. Adjusted net income was $138.2 million in the reported quarter compared with $154.9 million in the prior year quarter.

Copart had cash and cash equivalents of $306.4 million as of Apr 30, 2020, compared with $186.3 million as of Jul 31, 2019. Long-term debt, revolving loan facility and capital-lease obligations were $403.6 million as of Apr 30, 2020, up from $400.1 million as of Jul 31, 2019.

Over the past year, Copart’s shares have increased 33.8% compared with the industry’s rise of 30.1%.

Zacks Rank & Stocks to Consider

Copart currently carries a Zacks Rank of 3 (Hold).

Some better-ranked stocks in the same sector are DocuSign Inc. DOCU, PFSweb, Inc. PFSW and SPS Commerce, Inc. SPSC, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DocuSign has an expected earnings growth rate of 71.89% for the current year. The stock has appreciated 135.1% in the past year.

PFSweb has a projected earnings growth rate of 80% for 2020. The company’s shares have gained 52.6% over the past year.

Energous has an estimated earnings growth rate of 7.1% for the ongoing year. The company’s shares have rallied 18.5% in a year’s time.

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