Online vehicle auction company Copart (NASDAQ: CPRT) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Copart beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $1.16 billion, up 14% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is Copart a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Copart’s revenue to grow 8.6% year on year to $1.22 billion, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Copart has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Copart’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. RB Global delivered year-on-year revenue growth of 4.1%, beating analysts’ expectations by 6.9%, and OPENLANE reported revenues up 7%, topping estimates by 1.4%. RB Global traded up 2.5% following the results while OPENLANE was also up 13.6%.
Read our full analysis of RB Global’s results here and OPENLANE’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 14.5% on average over the last month. Copart is up 1.3% during the same time and is heading into earnings with an average analyst price target of $61.89 (compared to the current share price of $61.22).
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