/Copart%2C%20Inc%20logo%20on%20website%20-by%20monticello%20via%20Shutterstock.jpg)
Copart, Inc. (CPRT), headquartered in Dallas, Texas, is a significant provider of online vehicle auction and remarketing services, facilitating the sale of vehicles to a diverse global customer base. With a market cap of 49.9 billion, the company has a robust market presence and a proven track record in vehicle remarketing. Copart connects buyers and sellers through advanced technology and a comprehensive auction platform. The company is scheduled to release its Q1 earnings on Thursday, Nov. 21.
Ahead of the event, analysts expect CPRT to report a profit of $0.37 per share, up 8.8% from $0.34 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions.
Its adjusted earnings of $0.33 per share for the last quarter missed the consensus estimate by 10.8%. Copart’s increased operational costs led to an EPS miss for the quarter.
For fiscal 2025, analysts expect CPRT to report an EPS of $1.54, up 10% from $1.40 in fiscal 2024.
CPRT stock is up 5.8% YTD, underperforming the broader S&P 500 Index's ($SPX) 22.1% gains and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% gain over the same time frame.
Copart's underperformance compared to the broader sector can be attributed to a number of challenges, including slower-than-expected revenue growth, increased competition in the online auction space, and difficulties integrating recent acquisitions. Plus, on Sep. 5, Copart closed down over 6% after reporting Q4 operating income of $359.5 million, below the consensus estimate of $411.8 million.
The consensus opinion on CPRT stock is moderately optimistic, with an overall “Moderate Buy” rating. Of seven analysts covering the stock, four advise a “Strong Buy” rating, and three advise “Hold.”
CPRT's average analyst price target is $58.57, suggesting a potential upside of 13% from the current levels.
On the date of publication, Rashmi Kumari 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.
