Copart Hits 52-Week Low Amid Mixed Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 20 2024
0mins
Should l Buy CPRT?
Shares of Copart, Inc. (CPRT.O) fell to a 52-week low today, closing at $40.04 after a disappointing earnings report. Despite reporting a GAAP EPS of $0.41, which slightly beat expectations, revenue of $1.16 billion fell short of the $1.17 billion consensus estimate, leading to a 0.73% decline in after-hours trading. The stock's performance remains below its 200-day moving average, signaling bearish momentum as analysts express concerns over declining insurance unit volumes and market share dynamics. CEO Jeffrey Liaw highlighted challenges in the auction market, emphasizing the need for operational efficiency amidst ongoing pressures.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CPRT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CPRT
Wall Street analysts forecast CPRT stock price to rise
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 35.550
Low
33.00
Averages
43.33
High
52.00
Current: 35.550
Low
33.00
Averages
43.33
High
52.00
About CPRT
Copart, Inc. is a provider of online auctions and vehicle remarketing services. The Company provides vehicle sellers with a full range of services to process and sell vehicles over the internet through the Company’s Virtual Bidding Third Generation (VB3) internet auction-style sales technology. The Company sells principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and directly to the general public. Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental, banks, finance companies, and fleet operators. It operates more than 200 locations in 11 countries and has more than 175,000 vehicles up for auction every day. The Company operates in United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. It operates both as an agent and on a principal basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Updated Quant Ratings Highlight Industrial Stocks Performance
- Quant Rating Overview: As the earnings season concludes, investors are focusing on updated quant ratings that reflect how companies rank across key factors such as valuation, growth, and profitability, aiding in more informed investment decisions.
- Top Rated Stocks: Southwest Airlines (LUV) and ATI both received a quant rating of 4.93, indicating a strong buy signal, which suggests these companies exhibit significant advantages in financial health and market performance.
- Low Rated Stocks: Thomson Reuters (TRI) received a quant rating of 1.44, categorized as a strong sell, highlighting substantial deficiencies in profitability and market confidence, potentially leading to selling pressure from investors.
- Industry Dynamics: Within industrial stocks, Sterling Infrastructure (STRL) boasts a rating of 4.87, indicating strong growth potential, yet it also faces valuation risks, prompting investors to carefully assess market signals before making investment decisions.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, the overall trend suggests increased confidence from analysts in certain stocks, potentially attracting more investor interest.
- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
See More
U.S. Stocks Rise as Supreme Court Strikes Down Trump's Tariffs
- Market Recovery: The S&P 500 rose by 0.69% and the Nasdaq 100 by 0.87% after the Supreme Court overturned Trump's global tariffs, indicating a positive investor response to the policy shift that alleviates trade tensions.
- Economic Data Impact: U.S. Q4 GDP grew by 1.4%, below the expected 2.8%, while the core PCE price index rose by 2.7%, exceeding expectations of 2.6%, suggesting inflation pressures may limit the Fed's ability to cut rates, affecting market sentiment.
- Manufacturing Activity Decline: The February S&P manufacturing PMI unexpectedly fell to 51.2, below the anticipated 52.4, indicating weakness in manufacturing that could challenge economic recovery and further exacerbate market uncertainty.
- Earnings Optimism: Over 74% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating strong corporate profitability that may support the stock market despite macroeconomic challenges.
See More
US Stocks Rally as S&P 500 Hits One-Week High Following Supreme Court Ruling
- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
See More
Midday Market Moves: Retailers Rally Post-Tariff Ruling
- Retailer Rally: Following the Supreme Court's tariff ruling, Amazon shares rose over 2% and Shopify climbed 4%, indicating retailers' resilience under tariff pressures, which could boost market confidence and consumer spending.
- Opendoor Beats Estimates: Opendoor reported fourth-quarter revenue of $736 million, exceeding the LSEG estimate of $549 million, although it anticipates a first-quarter adjusted EBITDA loss in the range of $30 million to $32 million; management aims for positive adjusted net income by the end of 2026, showcasing long-term growth potential.
- Comfort Systems Strong Performance: Comfort Systems reported a fourth-quarter EPS of $9.37, surpassing the FactSet estimate of $6.75, with revenue of $2.65 billion exceeding the $2.34 billion forecast, highlighting the company's robust performance in the HVAC and electrical services sector.
- Chemours Shares Plunge: Chemours' fourth-quarter EPS was only 5 cents, below the FactSet estimate of 7 cents, with revenue of $1.33 billion matching market expectations, reflecting challenges in the industrial and specialty chemicals sector, leading to an 18% drop in share price.
See More
Copart's Q2 Earnings Miss Expectations, Stock Drops
- Earnings Decline: Copart reported Q2 fiscal 2026 earnings of $0.36 per share, missing analyst expectations of $0.39, with sales at $1.12 billion reflecting a 4% year-over-year decline, indicating ongoing profitability challenges for the company.
- Cash Flow Improvement: While operating cash flow remained stable at $662.8 million year-over-year, Copart significantly reduced capital expenditures by nearly half to $177.7 million, resulting in a strong free cash flow of $485.1 million, potentially reaching $970 million by fiscal year-end.
- Market Reaction: Following the earnings miss, Copart's stock fell 4.5% by Friday morning, reflecting investor concerns about the company's growth prospects amid declining sales and profits, which have worsened since Q1.
- Valuation Analysis: Although management did not provide specific guidance, if Copart meets its free cash flow expectations, the price-to-free cash flow ratio would be 37.4, and after accounting for $5.1 billion in net cash, the EV/FCF ratio drops to 32.1, suggesting the stock is relatively undervalued.
See More
Updated Quant Ratings Highlight Industrial Stocks Performance
- Quant Rating Overview: As the earnings season concludes, investors are focusing on updated quant ratings that reflect how companies rank across key factors such as valuation, growth, and profitability, aiding in more informed investment decisions.
- Top Rated Stocks: Southwest Airlines (LUV) and ATI both received a quant rating of 4.93, indicating a strong buy signal, which suggests these companies exhibit significant advantages in financial health and market performance.
- Low Rated Stocks: Thomson Reuters (TRI) received a quant rating of 1.44, categorized as a strong sell, highlighting substantial deficiencies in profitability and market confidence, potentially leading to selling pressure from investors.
- Industry Dynamics: Within industrial stocks, Sterling Infrastructure (STRL) boasts a rating of 4.87, indicating strong growth potential, yet it also faces valuation risks, prompting investors to carefully assess market signals before making investment decisions.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, the overall trend suggests increased confidence from analysts in certain stocks, potentially attracting more investor interest.
- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
See More
U.S. Stocks Rise as Supreme Court Strikes Down Trump's Tariffs
- Market Recovery: The S&P 500 rose by 0.69% and the Nasdaq 100 by 0.87% after the Supreme Court overturned Trump's global tariffs, indicating a positive investor response to the policy shift that alleviates trade tensions.
- Economic Data Impact: U.S. Q4 GDP grew by 1.4%, below the expected 2.8%, while the core PCE price index rose by 2.7%, exceeding expectations of 2.6%, suggesting inflation pressures may limit the Fed's ability to cut rates, affecting market sentiment.
- Manufacturing Activity Decline: The February S&P manufacturing PMI unexpectedly fell to 51.2, below the anticipated 52.4, indicating weakness in manufacturing that could challenge economic recovery and further exacerbate market uncertainty.
- Earnings Optimism: Over 74% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating strong corporate profitability that may support the stock market despite macroeconomic challenges.
See More
US Stocks Rally as S&P 500 Hits One-Week High Following Supreme Court Ruling
- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
See More
Midday Market Moves: Retailers Rally Post-Tariff Ruling
- Retailer Rally: Following the Supreme Court's tariff ruling, Amazon shares rose over 2% and Shopify climbed 4%, indicating retailers' resilience under tariff pressures, which could boost market confidence and consumer spending.
- Opendoor Beats Estimates: Opendoor reported fourth-quarter revenue of $736 million, exceeding the LSEG estimate of $549 million, although it anticipates a first-quarter adjusted EBITDA loss in the range of $30 million to $32 million; management aims for positive adjusted net income by the end of 2026, showcasing long-term growth potential.
- Comfort Systems Strong Performance: Comfort Systems reported a fourth-quarter EPS of $9.37, surpassing the FactSet estimate of $6.75, with revenue of $2.65 billion exceeding the $2.34 billion forecast, highlighting the company's robust performance in the HVAC and electrical services sector.
- Chemours Shares Plunge: Chemours' fourth-quarter EPS was only 5 cents, below the FactSet estimate of 7 cents, with revenue of $1.33 billion matching market expectations, reflecting challenges in the industrial and specialty chemicals sector, leading to an 18% drop in share price.
See More
Copart's Q2 Earnings Miss Expectations, Stock Drops
- Earnings Decline: Copart reported Q2 fiscal 2026 earnings of $0.36 per share, missing analyst expectations of $0.39, with sales at $1.12 billion reflecting a 4% year-over-year decline, indicating ongoing profitability challenges for the company.
- Cash Flow Improvement: While operating cash flow remained stable at $662.8 million year-over-year, Copart significantly reduced capital expenditures by nearly half to $177.7 million, resulting in a strong free cash flow of $485.1 million, potentially reaching $970 million by fiscal year-end.
- Market Reaction: Following the earnings miss, Copart's stock fell 4.5% by Friday morning, reflecting investor concerns about the company's growth prospects amid declining sales and profits, which have worsened since Q1.
- Valuation Analysis: Although management did not provide specific guidance, if Copart meets its free cash flow expectations, the price-to-free cash flow ratio would be 37.4, and after accounting for $5.1 billion in net cash, the EV/FCF ratio drops to 32.1, suggesting the stock is relatively undervalued.
See More
