Earnings Results to Track: Copart, Inc. (NASDAQ: CPRT)

On Thursday, Shares of Copart, Inc. (NASDAQ: CPRT) gained 0.96% to $58.88. The stock opened its trade at $58.75 and after floating in a price range of $58.51 to $59.15; the stock grabbed the investor’s attention and traded 1.83M shares as compared to its average daily volume of 2.80M shares. The stock’s institutional ownership stands at 82.50%.

Copart, Inc. (CPRT) recently stated financial results for the quarter ended April 30, 2018.

For the three months ended April 30, 2018, revenue, gross profit, and net income were $478.20M, $219.10M, and $127.30M, respectively. These represent a boost in revenue of $104.30M, or 27.9%; a boost in gross profit of $46.60M, or 27.0%; and a boost in net income of $36.80M, or 40.6%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.52 contrast to $0.38 last year, a boost of 36.8%.

For the nine months ended April 30, 2018, revenue, gross profit, and net income were $1.40B, $573.90M, and $308.10M, respectively. These represent a boost in revenue of $287.10M, or 26.8%; a boost in gross profit of $109.40M, or 23.5%; and a decrease in net income of $15.80M, or 4.9%, respectively, from the same period last year. Fully diluted earnings per share for the nine months were $1.28 contrast to $1.37 last year, a decrease of 6.6%.

The operating results for the three and nine months ended April 30, 2018 were adversely affected by abnormal costs of $7.40M and $79.70M, respectively, incurred as a result of Hurricane Harvey. These costs included temporary storage facilities; premiums for subhaulers; labor costs incurred from overtime; travel and lodging because of the reassignment of employees to the affected region; and equipment lease expenses to handle the increased volume, as well as cost of vehicle sales. These costs, net of the associated revenues of $3.50M and $66.90M, respectively, generated pre-tax loss for the three months ended April 30, 2018 of $3.90M, and a pre-tax loss of $12.80M for the nine month period. The operating results for the nine months ended April 30, 2018 were also adversely influenced by a charge of $11.00M to income tax expense for the deemed repatriation of foreign earnings and profits under the Tax Cuts and Jobs Act of 2017, net of deferred tax changes, and was offset by the Act’s reduction of the federal corporate income tax rate. Because Copart’s fiscal year includes periods before and after the effective date of the Act, during which the U.S. federal corporate tax rate was 35% and 21%, respectively, our U.S. federal corporate tax rate for fiscal year 2018 will be 26.9%. The operating results for the nine months ended April 30, 2018, include the benefit of this rate reduction.

CPRT has a market value of $13.52B while its EPS was booked as $1.62 in the last 12 months. The stock has 229.59M shares outstanding. In the profitability analysis, the company has gross profit margin of 42.70% while net profit margin was 21.80%. Beta value of the company was 0.92; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.30.

Penny Cook

Penny Cook is passionate about business and finance news with over 5 years in the industry starting as a writer working her way up into senior positions. She is the driving force behind www.nasdaqjournal.com with a vision to broaden the company’s readership throughout 2016. Cook is an editor and reporter of “Services” Category.