Copart (CPRT) Announces Third Quarter Fiscal 2025 Financial Earnings Results

Copart, Inc. (CPRT) today announced its financial results for the most recent quarter, revealing earnings per share of $0.42, which slightly exceeded analysts’ expectations of $0.41667. However, the company reported revenue of $42.8 million, falling significantly short of the estimated $1.23 billion. Despite the earnings beat, the substantial revenue miss highlights ongoing challenges for the company in meeting market forecasts.

Key Highlights:

• Copart, Inc. reported Q3 fiscal 2025 results with revenue of $1.2 billion, a 7.5% increase year-over-year.
• Gross profit for the quarter was $552.3 million, up 5.1% from the previous year.
• Net income attributable to Copart, Inc. reached $406.6 million, a 6.4% increase compared to the same period last year.
• Fully diluted earnings per share increased to $0.42, up 7.7% from $0.39 in the prior year.
• For the nine months ended April 30, 2025, revenue totaled $3.5 billion, reflecting an 11.2% increase year-over-year.

Summary: Copart, Inc. (NASDAQ: CPRT) announced its financial results for the third quarter of fiscal 2025, showcasing a revenue of $1.2 billion, which represents a 7.5% increase compared to the same quarter last year. The company also reported a gross profit of $552.3 million, indicating a 5.1% rise, and a net income of $406.6 million, which is a 6.4% increase year-over-year. The fully diluted earnings per share rose to $0.42 from $0.39, reflecting a positive trend in profitability. For the nine months ending April 30, 2025, Copart’s revenue reached $3.5 billion, marking an 11.2% increase from the previous year.

The results highlight Copart’s strong performance in its core business of online vehicle auctions, leveraging technology and a vast network to connect vehicle consignors with a global membership base. Management expressed optimism about future growth, as evidenced by the consistent increases in revenue and net income, indicating a robust business model capable of capitalizing on market opportunities. The upcoming conference call scheduled for May 22, 2025, will provide further insights into the company’s performance and strategic direction.

Copart, Inc. (CPRT) has experienced a notable fluctuation in its stock price, with a recent dip of 2.13% over the past week, which may raise eyebrows among investors. However, looking at the broader picture, the stock has shown resilience with a 4.02% increase over the past month and an impressive 11.21% rise over the last year. This upward trajectory is supported by solid fundamental metrics, including a robust price-to-earnings ratio of 40.73, indicating strong investor confidence in the company’s growth potential. The company’s earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 14.32% over the last two years, while revenue and free cash flow have also seen healthy growth rates of 10.76% and 13.31%, respectively. Furthermore, Copart boasts a remarkable return on invested capital of 22.67% and a net profit margin of 32.24%, underscoring its operational efficiency and profitability. As the market digests these figures, investors may view the recent price dip as a potential buying opportunity, given the company’s strong fundamentals and growth trajectory. Overall, Copart remains a compelling player in the market, balancing short-term volatility with long-term growth prospects.

Copart, Inc. provides online auctions and vehicle remarketing services in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain. It offers a range of services for processing and selling vehicles over the internet through its virtual bidding third generation internet auction-style sales technology to vehicle sellers, insurance companies, banks and finance companies, charities, fleet operators, dealers, vehicle rental companies, and individuals. The company’s services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, virtual insured exchange, transportation, vehicle inspection stations, on-demand reporting, title processing and procurement, loan payoff, flexible vehicle processing programs, buy it now, member network, sales process, and dealer services. Its services also comprise services to sell vehicles through CashForCars.com; U-Pull-It service that allows buyer to remove valuable parts and sell the remaining parts and car body; copart 360, an online technology for posting vehicle images; membership tiers for those registering to buy vehicles through Copart.com; and virtual queue to secure a place in line while visiting one of its locations. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the public. The company was incorporated in 1982 and is headquartered in Dallas, Texas.