Shares of Copart (CPRT.US) gain 9% today after strong earnings report with revenues up almost 12.5% YoY. Morningstar' analysts named Copart one of the strongest moats in the auto industry. The company receives the majority of its vehicle volume through contracts with large auto insurance firms and sells them on consignment for high margins, often to dismantles. Wall Street almost ignored some pressure on company margins.
- The vehicle auction company posted adjusted EPS of $0.37, in line with the consensus and aboce $0.34 in Q3 2023; up 8.8% YoY. Revenue came in at $1.15 billion, above $1.09 billion estimated on Wall Street. It is a 12.4% YoY increase from $1.02 billion in the Q3 2023.
- Service revenues grew 14.8% YoY to $986.3 million, but vehicle sales dipped only slightly by 0.2% to $160.5 million. However, the market expects that auto sales will rise in Q4 and through 2025 with lower Fed rates stimulating vehicles demand.
- Net income rose 8.9% YoY to $362.1 million, with gross profit at $512.1 million (10.4% YoY). The company commented positively about its global expansion and technology investments; connecting 'more buyers and sellers in our marketplace'.
Source: xStation5
Daily summary: Alphabet shares support sentiments on Wall Street 🗽Oil, precious metals and crypto slide
Critical Metals at the center of speculation around Greenland 🔎
US Open: Nasdaq continue to climb📈Intel and Eli Lilly stocks surge
German industrial conglomerate to sell off troubled unit in India ❓Shares gain 5% 📈