What to Expect from Copart's Earnings

Copart CPRT is preparing to release its quarterly earnings on Thursday, 2024-11-21. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Copart to report an earnings per share (EPS) of $0.37.

Anticipation surrounds Copart's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

Last quarter the company missed EPS by $0.03, which was followed by a 6.67% drop in the share price the next day.

Here's a look at Copart's past performance and the resulting price change:

Performance of Copart Shares

Shares of Copart were trading at $56.52 as of November 19. Over the last 52-week period, shares are up 11.42%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Copart

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Copart.

The consensus rating for Copart is Neutral, derived from 2 analyst ratings. An average one-year price target of $58.0 implies a potential 2.62% upside.

Analyzing Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Cintas, RB Global and ACV Auctions, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• As per analysts' assessments, Cintas is favoring an Neutral trajectory, with an average 1-year price target of $211.45, suggesting a potential 274.12% upside.
• Analysts currently favor an Outperform trajectory for RB Global, with an average 1-year price target of $102.3, suggesting a potential 81.0% upside.
• Analysts currently favor an Outperform trajectory for ACV Auctions, with an average 1-year price target of $22.83, suggesting a potential 59.61% downside.

Snapshot: Peer Analysis

Within the peer analysis summary, vital metrics for Cintas, RB Global and ACV Auctions are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Copart ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, its return on equity is below average compared to the group.

Unveiling the Story Behind Copart

Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart's vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle's final selling price.

Financial Insights: Copart

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Copart displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 7.16%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Copart's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 30.17% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Copart's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.39%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Copart's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.92%, the company showcases efficient use of assets and strong financial health.

Debt Management: Copart's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.

To track all earnings releases for Copart visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.