Online vehicle auction company Copart (NASDAQ: CPRT) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Copart missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.21 billion, up 7.5% year on year. It was a slower quarter for the company, with EPS in line with analysts’ 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 8.7% year on year to $1.16 billion, improving from the 7.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. OPENLANE delivered year-on-year revenue growth of 8.5%, beating analysts’ expectations by 5.9%, and RB Global reported revenues up 8.2%, topping estimates by 5%. OPENLANE traded up 11.8% following the results while RB Global was also up 2.2%.
Read our full analysis of OPENLANE’s results here and RB Global’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 4.2% on average over the last month. Copart is up 6.2% during the same time and is heading into earnings with an average analyst price target of $58.63 (compared to the current share price of $48.58).
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