Shares of Copart (CPRT) are up 10% and trading at an all-time high after the company that specializes in online vehicle auctions and automotive reselling announced better-than-expected financial results.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Copart announced earnings per share (EPS) that were inline with the consensus view of Wall Street analysts. However, the company reported revenue of $1.15 billion for its Fiscal first quarter, which beat estimates of $1.10 billion. Sales were up 12% from a year earlier.
Importantly, revenue from Copart’s remarketing service, which makes up most of its topline, was up 15%, while vehicle sales through its online auction were flat year-over-year. Management said that higher gross margins helped the company to offset an increase in overhead costs.
Bullish Guidance
CPRT stock is also getting a lift from bullish guidance by the company that runs an online platform for auctioning off mostly used and salvaged vehicles. Management said that they expect to see sales volumes rise in coming years as vehicles in the North American market continue to age.
Copart also finished the quarter in an extremely strong cash position. The company reported having $3.7 billion of cash on hand and only $100 million of debt. That fortress cash position puts the company in a strong position should the U.S. economy continue to slow in coming months, say analysts.
CPRT stock has risen 27% so far in 2024.
Is CPRT Stock a Buy?
The stock of Copart has a consensus Moderate Buy rating among three Wall Street analysts. That rating is based on one Buy and two Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average CPRT price target of $61 implies 2.24% downside risk from current levels.
