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Copart's (CPRT) Q4 Earnings & Revenues Beat Estimates

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Copart, Inc.CPRT reported earnings per share ("EPS") of 44 cents for fourth-quarter fiscal 2015 (ended Jul 31, 2015), up from 39 cents in the corresponding quarter of fiscal 2014. Moreover, EPS surpassed the Zacks Consensus Estimate of 39 cents.

Results for both the reported and year-ago quarters include a favorable impact of 3 cents per share related to the beneficial resolution of uncertain tax positions. Net income (on a reported basis) amounted to $57.4 million, up 12.5% year over year.

Copart Inc. - Earnings Surprise | FindTheBest

Copart's revenues dropped 1.8% to $282.3 million in the fourth quarter of fiscal 2015. However, the figure surpassed the Zacks Consensus Estimate of $280 million. Service revenues inched up 1% to $243.7 million, while revenues from vehicle sales fell 16.4% to $38.6 million.

Gross margin improved 1.6% to $118.8 million (42.1% of sales) in the reported quarter from $116.9 million (40.7% of sales) a year ago. Operating expenses fell 7.6% to $195.5 million from $211.6 million in the year-ago quarter.

Operating income increased 14.4% to $86.8 million from $75.9 million recorded in the fourth quarter of fiscal 2014.

Fiscal 2015 Results

Copart reported a rise in EPS to $1.67 for fiscal 2015 from $1.58 in the prior year. EPS also outpaced the Zacks Consensus Estimate of $1.62.

Earnings for fiscal 2014 have been adjusted for an impairment charge of $29.1 million recorded in the third quarter. Including this charge, earnings for last year amount to $1.36 per share.

Net income went up 23% to $219.8 million from $178.7 million in fiscal 2014.

Annual revenues decreased 1.5% year over year to $1.146 billion, marginally surpassing the Zacks Consensus Estimate of $1.144 billion.

Financial Details

Copart had cash and cash equivalents of $456.0 million as of Jul 31, 2015, compared with $158.7 million as of Jul 31, 2014. Total debt and capital lease obligations amounted to $645.8 million as of Jul 31, 2015, compared with $302.9 million as of Jul 31, 2014.

During fiscal 2015, Copart generated net cash flow of $265.1 million from operations, compared with $262.6 million in the same period a year ago. Capital spending was $79.2 million, compared with $95.8 million in fiscal 2014.

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, with a Zacks Rank #3 (Hold), provides a wide range of remarketing services to vehicle suppliers, primarily insurance companies, to process and sell salvage vehicles. This is done mainly over the Internet, through its Virtual Bidding Internet auction-style sales technology.

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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 Nasdaq, Inc.


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

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