Copart (NasdaqGS:CPRT) Q2 2026 Earnings call February 19, 2026 05:30 PM ET Speaker8Good day, everyone, and welcome to the Copart Incorporated second quarter fiscal 2026 earnings call. Just a reminder, today's conference is being recorded. Before turning the call over to management, I will share Copart's safe harbor statement. The company's comments today include forward-looking statements within the meaning of the federal securities laws, including management's current views with respect to trends, opportun ...

Here's a look at the details from the quarter. CPRT stock is moving. Watch the price action here.Q2 Details Copart reported quarterly earnings of 36 cents per share, which missed the consensus estimate of 40 cents, according to data from Benzinga Pro. Quarterly revenue of $1.12 billion missed the Street estimate of $1.14 billion and was down from $1.16 billion in the same period last year.The company will hold a conference call on Thursday at 5:30 p.m. ET to discuss the results. Expert IdeasCopart stock car ...

Exhibit 99.1 Copart, Inc. For Immediate Release Copart Reports Second Quarter Fiscal 2026 Financial Results Dallas, Texas February 19, 2026 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2026. For the three months ended January 31, 2026, revenue, gross profit, and net income attributable to Copart, Inc. were $1.1 billion, $492.8 million, and $350.7 million, respectively. These represent a decrease in revenue of $(41.6) million, or (3.6)%; a decrease in gross ...

Company Overview - Copart, Inc. is a global leader in online vehicle auctions, founded in 1982, connecting vehicle consigners to approximately 1 million members in over 185 countries [1] - The company operates over 250 locations in 11 countries and sold more than 4 million units in the last year [1] Financial Results - For the first quarter of fiscal 2026, Copart reported revenue of $1.16 billion, gross profit of $537 million, and net income of $403.7 million, reflecting an increase in revenue of $8.2 million (0.7%), gross profit increase of $24.9 million (4.9%), and net income increase of $4 million (1.0%) [1] - For the fourth quarter of fiscal 2025, revenue was $1.1 billion, gross profit was $510 million, and net income was $396 million, showing an increase in revenue of $56.1 million (5.2%), gross profit increase of $56.1 million (12.4%), and net income increase of $73.8 million (22.9%) [1] Upcoming Events - Copart will release earnings for the second quarter of fiscal 2026 on February 19, 2026, and will conduct a conference call to discuss the results [1] - The conference call will be webcast live and available for replay through May 2026 [1]

Group 1 - Copart, Inc. (NASDAQ:CPRT) has announced a new $1.25 billion unsecured senior revolving credit facility to enhance its financial flexibility, which will support acquisitions, capital expenditures, share repurchases, and global expansion initiatives [2] - The new credit facility replaces the previous one and includes options for two one-year extensions, maturing on January 23, 2031 [2] - The company aims to leverage increased foreign-currency borrowing capacity and a discretionary incremental facility of up to $500 million [2] Group 2 - Prior to the financing decision, Copart's share price fell to a 52-week low of $38.17, marking a 30.49% decline over the previous year, reflecting investor caution in the auto-remarketing sector amid market volatility [3] - Despite the decline, 60% of analysts maintain bullish ratings on the stock, indicating moderately constructive sell-side sentiment [3] - The consensus price target for Copart's stock is $47.00, suggesting an upside potential of approximately 15.82%, which could contribute to long-term value creation as market conditions stabilize [4] Group 3 - Copart operates a global online vehicle auction marketplace, providing remarketing, inspection, logistics, and vehicle processing services to insurers, dealers, dismantlers, and exporters worldwide [4]

Group 1 - Copart, Inc. (NASDAQ:CPRT) has announced a new $1.25 billion unsecured senior revolving credit facility to enhance its financial flexibility, which will support acquisitions, capital expenditures, share repurchases, and global expansion initiatives [2] - The new credit facility replaces the previous one and includes options for two one-year extensions, maturing on January 23, 2031, and allows for an incremental facility of up to $500 million [2] - Prior to this financing decision, Copart's share price fell to a 52-week low of $38.17, marking a 30.49% decline over the previous year, reflecting investor caution in the auto-remarketing space [3] Group 2 - Despite the recent decline in share price, 60% of analysts maintain bullish ratings on Copart, indicating moderately constructive sell-side sentiment [3] - The stock has a consensus price target of $47.00, suggesting an upside potential of approximately 15.82%, which could contribute to long-term value creation as market conditions stabilize [4] - Copart operates a global online vehicle auction marketplace, providing remarketing, inspection, logistics, and vehicle processing services to various stakeholders including insurers and dealers [4]

Core Viewpoint - RB Global, formerly known as Ritchie Bros. Auctioneers, is poised for a breakout as it competes with Copart, which is currently facing challenges in the market [1] Company Overview - RB Global operates a network of auction sites and collaborates with rental and fleet companies such as Hertz Global and Enterprise, as well as major insurance firms like State Farm, Allstate, and Geico, a subsidiary of Berkshire Hathaway [1] Performance Metrics - RB Global has shown rising price performance, leading to an upgrade in its IBD Relative Strength Rating [1] - The company's Composite Rating has improved to 96, indicating strong performance relative to peers [1]

Group 1 - Copart Inc. is recognized as one of the best used-car stocks to buy, according to hedge funds [1] - The company entered into a new $1.25 billion unsecured senior revolving credit agreement to replace a previous credit facility [1][3] - The new credit facility has interest rates based on a fixed rate plus a margin of 0.75% to 1.125% or a daily rate plus a margin of 0% to 0.125% [3] Group 2 - Copart's first-quarter fiscal 2026 results showed revenue of $1.16 billion, a 0.7% increase year over year, and a gross profit of $537 million [4] - Net income increased by 11.5% to $403.7 million, resulting in diluted earnings per share of $0.41, up from $0.37 a year earlier [4] - The company specializes in online vehicle auctions and remarketing services, connecting sellers with buyers through its proprietary VB3 digital auction platform [5]

Core Viewpoint - Copart, Inc. has experienced significant underperformance in its stock price compared to the broader market and specific sector indices, primarily due to cooled growth momentum and challenging market conditions in the used vehicle sector [2][5]. Company Overview - Copart, Inc. is based in Dallas, Texas, and specializes in online auctions and vehicle remarketing services, with a market capitalization of $39.3 billion. The company operates a virtual bidding platform and provides services such as salvage estimation, processing, transportation, and title management [1]. Stock Performance - Over the past year, Copart's stock (CPRT) has declined by 30.7%, while the S&P 500 Index has increased by 14.3%. However, in 2026, CPRT stock has risen by 3.7%, outperforming the S&P 500's 1.4% increase year-to-date [2]. - Compared to the Industrial Select Sector SPDR Fund (XLI), which has gained about 18.7% over the past year, CPRT's performance has been notably weaker [3]. Financial Outlook - Analysts project a 4.4% growth in CPRT's earnings per share (EPS) for the current fiscal year, expecting it to reach $1.66 on a diluted basis. The company has a strong earnings surprise history, having beaten or matched consensus estimates in the last four quarters [5]. Analyst Ratings - Among the 12 analysts covering CPRT, the consensus rating is a "Moderate Buy," consisting of five "Strong Buy" ratings, six "Holds," and one "Strong Sell" [6]. - The mean price target for CPRT is $50.89, indicating a 25.4% premium to its current price, while the highest price target of $65 suggests a potential upside of 60.2% [8].

Company Overview - Dolby Laboratories, Inc. is a prominent player in the audio and imaging industry, recognized for its innovative sound technologies across various platforms including cinemas, home theaters, PCs, mobile devices, and games [1] Financial Performance - Dolby has a Return on Invested Capital (ROIC) of 8.28% and a Weighted Average Cost of Capital (WACC) of 7.90%, resulting in a ROIC to WACC ratio of 1.05, indicating efficient capital utilization with potential for improvement compared to peers [2] - NETGEAR, Inc. has a negative ROIC of -7.78% against a WACC of 8.91%, leading to a ROIC to WACC ratio of -0.87, highlighting inefficiencies in capital utilization [3] - Morningstar, Inc. exhibits a strong ROIC of 15.33% and a WACC of 8.43%, resulting in a ROIC to WACC ratio of 1.82, indicating high efficiency in generating returns over its cost of capital, outperforming Dolby and other peers [4] - Copart, Inc. has a ROIC of 14.43% and a WACC of 8.98%, yielding a ROIC to WACC ratio of 1.61, while MSC Industrial Direct shows a ROIC of 11.46% and a WACC of 7.32%, with a ratio of 1.57, both surpassing Dolby's efficiency [5]