Copart, Inc.
CPRT
is scheduled to release first-quarter fiscal 2021 results today after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share and revenues is 69 cents and $571 million, respectively.
In the last reported quarter, the Texas-based online vehicle auctioning company posted an earnings beat on higher-than-expected service revenues and vehicle sales. The bottom line also improved year over year on higher revenues and lower operating costs.
Copart — which is considered the
eBay
EBAY
of salvage vehicles — surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average surprise being 19.4%. This is depicted in the graph below:
Trend in Estimate Revision
The Zacks Consensus Estimate for revenues indicates a 3% rise from $554 million recorded in the prior-year quarter. The Zacks Consensus Estimate for fiscal first-quarter earnings has moved up by a penny in the past seven days. The bottom-line forecast calls for an increase of 6.2% year over year.
What the Zacks Model Says
Our proven model predicts an earnings beat for Copart this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Earnings ESP
: Copart has an Earnings ESP of +5.11%. This is because the Most Accurate Estimate is pegged 3 cents higher than the Zacks Consensus Estimate.
Zacks Rank:
Copart — whose peers include
KAR Auctions Services Inc.
KAR
and
Insurance Auto Auctions
aka
IAA, Inc.
IAA
— currently carries a Zacks Rank of 2. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Let’s delve deeper into the factors that are likely to have influenced Copart’s fiscal first-quarter earnings.
Factors at Play
Copart’s active presence in the United States and international markets is likely to bolster the firm’s results for the to-be-reported quarter. Expansion efforts and digital ramp up are likely to have aided Copart’s revenues in the August-October period. During the quarter to be reported, the company rolled out Copart Max, an industry-leading product suite with augmented digital capabilities. The firm’s proprietary technology will allow for a more cost-effective sale of vehicles.
In addition to robust e-commerce activities and expansion of its network, the company’s strategic acquisitions are also likely to have driven revenues. Copart’s buyout of Kentucky-based online auctioning platform, Vincent Auto Solutions, strengthened its footprint in Western Kentucky and is also likely to have contributed to sales in the quarter to be reported.The Zacks Consensus Estimate for service revenues is pegged at $515 million, pointing to an uptick of 5.5% year over year.
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