Copart Earnings Preview

Copart CPRT is scheduled to report third-quarter fiscal 2011 results after the closing bell on Wednesday, June 1. The effects of the Copart's deal for a nationwide exclusive arrangement with Allstate ALL will be on investors' minds. Analysts expect the online auto reseller to announce that earnings came to $0.70 per share. The consensus estimate was the same 60 days ago, and per-share earnings came in at $0.52 in the same period of last year. Copart fell short of consensus earnings estimates in just one of the past five quarters. The Company Copart provides online auctions and vehicle remarketing services in Canada, the United Kingdom and the United States. The buyers are mostly rebuilders, licensed dismantlers and used-car dealers and exporters. The company operates 150 facilities and is headquartered in Fairfield, California. Revenue During the three months that ended in April, Copart announced plans to relocate its headquarters to Dallas, Texas, acquired Barodge Auto Pool and Hewitt International, and launched an iPhone app. The revenue forecast for that period calls for an increase of 9.6% from the same period of last year to $241.6 million. And year-over-year growth of both earnings and revenues is projected the current quarter as well. Performance Copart has a long-term earnings per share growth forecast of 14.3% and a return on equity of 15.0%. Analysts on average recommend buying CPRT and have for more than 90 days. Their mean price target is currently $47.44 per share. Note though that shares are trading near the recent 52-week high of $47.12. The share price is 24.4% higher than at the beginning of the year; the stock has outperformed the broader markets in that time.