Copart Misses Q3 Earnings Ests, Up Y/Y - Analyst Blog

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Copart, Inc. ( CPRT ) reported earnings per share (EPS) of 46 cents for third-quarter fiscal 2014 (ended Apr 30, 2014), up from 38 cents in the corresponding quarter last year. However, the EPS lagged the Zacks Consensus Estimate of 47 cents by a narrow margin.

The reported quarter's earnings exclude an impairment charge of $29.1 million, while the prior-year quarter excludes the impact of Hurricane Sandy. Including these items, net income (on a reported basis) amounted to $40.9 million, down 23.2% over the prior-year quarter.

Copart's revenues went up 11.6% to $309.7 million in the quarter, nominally beating the Zacks Consensus Estimate of $309 million. Service revenues augmented 13.9% to $255 million and revenues from vehicle sales went up 1.9% to $54.7 million.

Gross margins increased 14.4% to $132.3 million (42.7% of sales) from $115.6 million (or 41.6%) in the year-ago quarter. General and administrative expenses went up 24.7% to $35.9 million from $28.8 million in the year-ago quarter.

Operating income plunged 24.4% to $62.6 million from $82.8 million recorded in the third quarter of fiscal 2013. Operating margin was 20.2% compared with 29.8% in the year-ago quarter.

Financial Details

Copart had cash and cash equivalents of $132.8 million as of Apr 30, 2014 versus $63.6 million as of Jul 31, 2013. Total debt and capital lease obligations amounted to $318.3 million as of Apr 30, 2014 compared with $372.5 million as of Jul 31, 2013.

During the first nine months of fiscal 2014, the company generated net cash flow of $207.6 million from operations compared with $183 million in the same period a year ago. Capital spending was $74.8 million compared with $140 million in the first nine months of fiscal 2013.

Copart is a prominent player in online auctions and vehicle remarketing services in the U.S., Canada, U.K. and U.A.E. along with Sotheby's ( BID ), Ritchie Bros. Auctioneers Incorporated ( RBA ) and Liquidity Services, Inc. ( LQDT ). The company provides a wide range of remarketing services to vehicle suppliers, primarily insurance companies, to process and sell salvage vehicles mainly over the Internet through the company's Virtual Bidding Internet auction-style sales technology.

Currently, Copart carries a Zacks Rank #3 (Hold).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: EPS , BID , CPRT , LQDT , RBA

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