/Copart%2C%20Inc%20logo%20on%20website%20-by%20monticello%20via%20Shutterstock.jpg)
Dallas, Texas-based Copart, Inc. (CPRT) provides online auctions and vehicle remarketing services. With a market cap of $50.5 billion, the company's operations span the U.S., Canada, Brazil, and various European and Asian countries. Its services include facilitating transactions, estimating salvage value, transportation, financing, and more.
Copart has underperformed the broader market over the past year. CPRT stock is up 8.4% in 2024 and 15.6% over the past 52-week period, lagging behind the S&P 500 Index’s ($SPX) 20.3% gains on a YTD basis and 31.6% returns over the past year, respectively.
In addition, Copart has also lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 18% gains on a YTD basis and 32.4% returns over the past 52 weeks.
Despite reporting a robust topline growth, Copart’s stock plunged 6.7% following the release of its fiscal 2024 earnings on Sept. 4. The company reported an impressive 9.5% year-over-year growth in total revenues to $4.2 billion, driven by an 11.3% surge in service revenues, totaling $3.6 billion. However, its Q4 earnings took a sharp hit, with its EPS plummeting 8.3% year-over-year to $0.33, primarily due to a massive 16.9% surge in total operating expenses to $709.5 million leading to a contraction in net and operating margins.
For the current fiscal year, ending in July 2025, analysts expect Copart to report a 10% year-over-year growth in adjusted EPS to $1.54. The company’s earnings surprise history is mixed. It has surpassed analysts’ earnings estimates in two of the past four quarters while missing on two other occasions. Its EPS of $0.33 in the last quarter missed the consensus estimates by 10.8%.
CPRT stock has a consensus “Moderate Buy” rating overall. Among the seven analysts covering the stock, four recommend “Strong Buy” and three advise a “Hold” rating.
On Sept. 5, Baird analyst Craig Kennison maintained an “Outperform” rating on Copart but lowered the price target to $56.
The mean price target of $58.57 represents a premium of 11.7% to current price levels. Meanwhile, the Street-high target of $64 suggests a potential upside of 22%.
On the date of publication, Aditya Sarawgi 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.
