Technical Analysis - Copart, Inc. (CPRT) has reached a significant support level, indicating a potential investment opportunity from a technical perspective [1] - The stock's 50-day simple moving average has recently broken above its 200-day moving average, forming a "golden cross," which is a bullish indicator [1] - A golden cross typically involves a downtrend followed by a crossover of the shorter moving average over the longer one, leading to a trend reversal and subsequent price increase [1] Performance Metrics - CPRT shares have increased by 21.3% over the past four weeks, suggesting positive momentum [1] - The company currently holds a 2 (Buy) rating on the Zacks Rank, indicating potential for further gains [1] Earnings Outlook - The earnings outlook for CPRT is positive, with no earnings estimates decreasing in the past two months and one revision higher [2] - The Zacks Consensus Estimate for earnings has also increased, reinforcing the bullish sentiment around the stock [2]

Core Viewpoint - Copart met analyst forecasts for fiscal Q1 2025 earnings and exceeded revenue expectations, leading to a positive market response with an 8.9% increase in stock price [1][2]. Financial Performance - Copart's revenues grew by 12% year over year in Q1, reaching $1.15 billion, which is approximately $50 million above Wall Street's forecast [3]. - Revenue from vehicle sales remained flat year over year at $160.5 million, while services revenue increased by 15% to $986.3 million [3]. - Net profits rose by 9% to $0.37 per share, matching analyst expectations [4]. - Free cash flow for the quarter was $245.5 million, translating to roughly $0.68 in real cash profits for every $1 of reported net income, with a 15% increase from fiscal Q1 2024 [4]. Valuation Metrics - Copart has a market capitalization of $59.7 billion, with $3.7 billion in cash and approximately $100 million in debt, resulting in an enterprise value of about $56 billion [5]. - The stock's debt-adjusted price-to-earnings ratio is 40, which is considered expensive given the company's profit growth in the low to mid-teens [5]. - Valued on free cash flow, the stock's EV/FCF ratio stands at 56x, indicating a high valuation relative to cash flow [5]. Investment Conclusion - Despite being a quality business in its niche, the current valuations of Copart appear too high for the growth rate of profits, leading to the conclusion that Copart stock is a sell [6].

Core Insights - Copart, Inc. reported adjusted earnings per share of 37 cents for the first quarter of fiscal 2025, matching the Zacks Consensus Estimate, with an 8.8% year-over-year increase [1] - The company generated revenues of $1.15 billion, exceeding the Zacks Consensus Estimate of $1.11 billion, and reflecting a 12.4% increase from the previous year [1] Revenue Breakdown - Service revenues for the quarter were $986.3 million, up from $859.5 million in the prior year, and surpassed the Zacks Consensus Estimate of $954 million, accounting for 86% of total revenues [3] - Vehicle sales totaled $160.5 million, slightly down from $160.9 million in the previous year and below the Zacks Consensus Estimate of $175 million [3] Expense Analysis - Facility operations expenses increased by 21.6% year over year to $447.2 million, while the cost of vehicle sales decreased by 6.6% to $138.2 million [4] - General and administrative expenses rose significantly by 57.9% to $90.99 million, contributing to total operating expenses increasing by 14.5% to $690 million [4] Profitability Metrics - Gross profit increased by 10.4% year over year to $512.1 million, with operating income rising to $740.5 million from $625 million in the prior year [4][5] - Net income grew by 8.6% year over year to $361.2 million [5] Cash Position - As of October 31, 2024, Copart had cash, cash equivalents, and restricted cash totaling $3.7 billion, a significant increase from $1.5 billion as of July 31, 2024 [5] - Net cash from operating activities for the quarter was $482.3 million, with capital expenditures amounting to $236.8 million [5]

Financial Data and Key Metrics - Global revenue increased to $1.15 billion, representing a growth of $126 million or 12% year-over-year [41] - Global service revenue grew by $127 million or 15%, driven by increased volume [41] - U.S. service revenue grew by 13%, with 2% attributable to catastrophic (cat) units, while international service revenue grew by 30% [41] - Global gross profit increased by $48 million or 10%, with gross margin decreasing by 82 basis points to 44.7% [46] - U.S. gross profit increased by $28 million or 7%, with gross margin decreasing by 260 basis points to 47.2% [47] - International gross profit increased by $20 million or 44%, with gross margin increasing by 740 basis points to 32.3% [47] - GAAP operating income increased by 3% to $406 million, and GAAP net income increased by 9% to $362 million or $0.37 per diluted share [50] Business Line Performance - U.S. insurance unit volume increased by 12% year-over-year, with 9% growth excluding cat units [36] - Blue car business, serving bank, finance fleet, and rental partners, grew over 20% year-over-year [37] - Dealer sales volume increased by over 2%, with National Powersports Auctions (NPA) growing nearly 14% and Copart Dealer Services (CDS) declining less than 1% [37] - Low-value units, including charities and municipalities, declined by 4% [37] - International unit growth was nearly 16%, with 6% from cat units due to severe floods in the UAE and Brazil [39] Market Performance - U.S. ASPs declined by only 1% year-over-year, outperforming the broader used vehicle market, which saw a 4% decline in the Mannheim Used Vehicle Price Index [40] - International ASPs increased by nearly 7% [40] - Three out of every four catastrophic units sold in Florida during October were sold on Copart's auction platform, reflecting strong market presence and execution speed [12] Strategic Direction and Industry Competition - The company is investing in physical, technological, and human capacity to serve insurance clients under any conditions, including severe weather events [33] - Copart is focusing on optimizing the mix of non-insurance units for profitability, pruning low-value unit volume [36] - The company is expanding its specialty equipment sales team, expecting meaningful growth in gross transaction value over the next 12-24 months [48] Management Commentary on Operating Environment and Future Outlook - Total loss frequency increased to 21.7%, up almost 2% year-over-year, driven by vehicle complexity and repair costs [16] - Long-term industry growth is expected due to population growth, vehicle miles traveled, and total loss frequency, offsetting declining accident rates from safety technologies [32] - The company anticipates more volatility from used car prices and severe weather events but remains confident in its ability to manage these challenges [33] Other Important Information - The company incurred $29 million in incremental costs related to Hurricanes Helene and Milton, with $18 million capitalized on the balance sheet to be recognized as remaining cat units are sold [44][45] - Copart ended the quarter with $4.9 billion in liquidity, including $3.7 billion in cash and capacity under a revolving credit facility [51] - Free cash flow for the quarter was $246 million, with operating cash flow of $482 million and capital investments of $237 million [51] Q&A Session Summary Question: Characteristics of insurance companies with higher or lower total loss frequency - Insurance companies vary in their total loss practices, with some adopting statutory thresholds (e.g., 75% of repair cost to intact value) and others using individual underwriting for each claim [59][60][61] - High-end luxury vehicles are more likely to be totaled due to customer service considerations [59] Question: Impact of off-lease vehicles on the blue car business - Off-lease volumes primarily impact the wholesale market, influencing pricing and unit availability, but have less direct impact on the blue car business, which focuses on damaged vehicles [65][66] Question: Impact of catastrophic events on uninsured motorists - Historical data does not show a clear correlation between catastrophic events and changes in uninsured motorist rates [71][72] Question: Impact of Trump tariffs on the business - The company did not observe a meaningful impact from the Trump tariffs on its business, as the affected countries are not significant importers or exporters of vehicles relevant to Copart [74][75] Question: G&A expenses and specialty sales team growth - G&A expenses increased due to investments in the specialty sales team, with expectations of partial receding over the next 12 months [48][80][81] Question: Market share in Florida and Title Express - Copart's ability to process cars quickly, including salvage title issuance, contributes to its competitive advantage in Florida [82][83][85] Question: Dealer services performance - Dealer services saw a slight decline of less than 1%, attributed to a soft wholesale market in September, but volumes rebounded in October [90] Question: Shift to consignment models in Germany - The company is gradually shifting insurance carriers in Germany to consignment models, similar to its approach in other markets [95][96][97] Question: Capital expenditure trends - Capital expenditures are primarily focused on land, development, and technology, with variations driven by immediate needs and growth expectations [100][101][102]

Copart, Inc. (CPRT) came out with quarterly earnings of $0.37 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.33, delivering a surprise of -10.81%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Copart, which belongs to the Zack ...

Exhibit 99.1 Copart, Inc. For Immediate Release Copart Reports First Quarter Fiscal 2025 Financial Results Dallas, Texas November 21, 2024 — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended October 31, 2024. For the three months ended October 31, 2024, revenue, gross profit, and net income attributable to Copart, Inc. were $1.15 billion, $512.1 million, and $362.1 million, respectively. These represent an increase in revenue of $126.4 million, or 12.4%; an increase in gross ...

Group 1 - The latest trading session for Copart, Inc. (CPRT) ended at $52.45, reflecting a +1.85% change, outperforming the S&P 500's loss of 0.28% [1] - The stock has decreased by 2.67% over the past month, underperforming the Business Services sector's gain of 1.14% and the S&P 500's gain of 0.41% [1] Group 2 - Copart, Inc. is expected to report an EPS of $0.37, representing an 8.82% increase from the prior-year quarter, with projected net sales of $1.09 billion, up 7.2% year-over-year [2] - For the entire year, the forecasted earnings are $1.54 per share and revenue of $4.6 billion, indicating increases of +10% and +8.66% respectively compared to the previous year [2] Group 3 - Recent changes to analyst estimates for Copart, Inc. are important as they reflect the evolving business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which assesses estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [4][5] Group 4 - Copart, Inc. has a Forward P/E ratio of 33.51, which aligns with the industry's average Forward P/E of 33.51 [6] - The Auction and Valuation Services industry, part of the Business Services sector, currently ranks 236 in the Zacks Industry Rank, placing it in the bottom 7% of over 250 industries [6][7]

Investors in Copart, Inc. (CPRT) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $80 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean ...

The auto/tires/trucks sector has been in a slump, as evidenced by weaker results and forecasts from manufacturers like Ford Motor Co. NYSE: F and Stellantis NYSE: STLA. High financing costs and an uncertain macroeconomic climate have caused consumers to tighten their spending, especially on big-ticket items like cars. However, not every part of the automobile industry is in a slump. The auto aftermarket of used cars and car parts is still thriving, and some companies are capitalizing on the action. Here are ...

It has been about a month since the last earnings report for Copart, Inc. (CPRT) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Copart due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Copart Q4 Earnings Miss ExpectationsCopart report ...