Latest news with #Copart
Yahoo
28-05-2025
- Automotive
- Yahoo
CPRT Q1 Earnings Call: Revenue Miss, Margin Pressures, and Market Cycle Headwinds
Online vehicle auction company Copart (NASDAQ:CPRT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 7.5% year on year to $1.21 billion. Its non-GAAP profit of $0.42 per share was in line with analysts' consensus estimates. Is now the time to buy CPRT? Find out in our full research report (it's free). Operating Margin: 37.3%, down from 38.8% in the same quarter last year Market Capitalization: $51.03 billion Copart's first quarter results reflected mixed underlying trends in its core insurance auction business and adjacent segments. Management highlighted that global insurance volumes were essentially flat, with U.S. insurance unit sales declining slightly year over year, primarily due to an increase in uninsured and underinsured drivers. CEO Jeff Liaw explained that this trend has cyclical roots tied to inflation and lagging insurance rate adjustments, which have led many drivers to reduce coverage or forgo insurance altogether. In contrast, non-insurance segments like BlueCar, serving bank and fleet partners, and dealer sales posted double-digit and moderate growth, respectively. The company also noted continued growth in average selling prices (ASPs) and emphasized investments in operational capacity and real estate infrastructure to support future demand and storm season readiness. Looking forward, Copart's management is focused on navigating a complex environment shaped by ongoing shifts in vehicle insurance coverage, evolving regulatory landscapes, and the impact of tariffs on vehicle parts pricing. Jeff Liaw indicated that higher repair costs, due to tariffs and rising parts prices, could make total loss settlements more attractive for insurers, potentially benefiting Copart's auction volumes. However, CFO Leah Stearns cautioned that inventory levels have declined, which can signal near-term headwinds for unit sales. Management also pointed to continued investments in technology and operational improvements, such as the expansion of Title Express, as key factors to drive efficiency and support long-term growth. The company remains watchful of legislative changes affecting storage fees and total loss thresholds, which could materially affect its business model. Management attributed the quarter's performance to cyclical insurance market shifts, growth in non-insurance segments, and investments in operational readiness. Insurance unit softness: U.S. insurance unit volumes were flat to slightly down, as management highlighted a cyclical increase in uninsured and underinsured drivers, reducing the flow of vehicles into traditional insurance auction channels. BlueCar and dealer segment growth: Copart's BlueCar unit, which services banks, rental, and fleet partners, grew nearly 14% year over year, while dealer sales volume rose over 3%, reflecting diversification outside traditional insurance auctions. International segment dynamics: International unit sales increased 6%, with notable fee unit growth. However, a shift by insurance customers from purchase contracts to consignment models led to declining purchase units but higher margins, especially in Germany and the UK. Tariff impact and repair economics: Management explained that recent tariffs on auto parts have increased repair costs, making insurance total loss decisions more likely and potentially boosting Copart's business, though uncertainty remains as federal guidance is still pending. Operational investments: The company continues to expand its real estate footprint, including the acquisition of Hall Ranch in Florida to enhance storm readiness, and has deployed technology solutions like Title Express to reduce cycle times and improve inventory turnover. Looking ahead, Copart's outlook is shaped by insurance market cycles, regulatory developments, and continued investment in operational capacity. Insurance market cycles: Management expects cyclical trends in insurance coverage rates to eventually reverse, with higher total loss frequency over time supporting long-term volume growth, despite current headwinds from uninsured drivers. Tariff and regulatory uncertainty: Ongoing changes to trade policy and tariffs on auto parts are expected to further influence repair-versus-total loss decision-making by insurers. Management noted that legislative actions affecting storage fees and total loss thresholds could create both risks and opportunities. Operational efficiency and technology: Investments in technology platforms, like digital auctions and Title Express, are intended to reduce operational cycle times and enhance Copart's ability to handle volatility in unit flows, supporting margin resilience and scalability. In the coming quarters, the StockStory team will be watching (1) whether insurance total loss frequency continues to rise and supports higher auction volumes; (2) how quickly Copart's non-insurance segments, such as BlueCar and dealer services, scale amid insurance market headwinds; and (3) any regulatory changes affecting repair costs, storage fees, or total loss thresholds. The pace of inventory replenishment and adoption of operational technologies will also be important markers of progress. Copart currently trades at a forward P/E ratio of 30.8×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
Why Copart Inc. (CPRT) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Copart Inc. (NASDAQ:CPRT) stands against other Friday's worst-performing stocks. Shares of Copart Inc. declined for a fifth consecutive day on Friday, losing 11.52 percent to close at $53.67 apiece after missing analysts' earnings estimates and reporting a drop in vehicle sales in the first quarter of the year. In its financial statement, Copart Inc. (NASDAQ:CPRT) said earnings per share came in at 42 cents, just in line with analyst estimates. However, revenues settled at $1.21 billion, short of the $1.23 billion consensus, but marked a 7.5 percent growth from the $1.1 billion reported in the same period last year. Of the total revenues, Copart Inc. (NASDAQ:CPRT) saw a 2.1 percent dip in vehicle sales to $177 million versus $180.6 million year-on-year, while service revenues increased by 9.3 percent. A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding. Attributable net income rose by 6.4 percent to $406.6 million from $383 million registered in the same period a year ago. For the nine-month period, revenues increased by 11.2 percent to $3.5 billion from $3.17 billion in the same period last year, with vehicle sales inching up by 1.9 percent. Attributable net income rose by 11.1 percent to $1.1 billion from $1.04 billion. Overall, CPRT ranks 6th on our list of Friday's worst-performing stocks. While we acknowledge the potential of CPRT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CPRT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Why Copart Inc. (CPRT) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Copart Inc. (NASDAQ:CPRT) stands against other Friday's worst-performing stocks. Shares of Copart Inc. declined for a fifth consecutive day on Friday, losing 11.52 percent to close at $53.67 apiece after missing analysts' earnings estimates and reporting a drop in vehicle sales in the first quarter of the year. In its financial statement, Copart Inc. (NASDAQ:CPRT) said earnings per share came in at 42 cents, just in line with analyst estimates. However, revenues settled at $1.21 billion, short of the $1.23 billion consensus, but marked a 7.5 percent growth from the $1.1 billion reported in the same period last year. Of the total revenues, Copart Inc. (NASDAQ:CPRT) saw a 2.1 percent dip in vehicle sales to $177 million versus $180.6 million year-on-year, while service revenues increased by 9.3 percent. A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding. Attributable net income rose by 6.4 percent to $406.6 million from $383 million registered in the same period a year ago. For the nine-month period, revenues increased by 11.2 percent to $3.5 billion from $3.17 billion in the same period last year, with vehicle sales inching up by 1.9 percent. Attributable net income rose by 11.1 percent to $1.1 billion from $1.04 billion. Overall, CPRT ranks 6th on our list of Friday's worst-performing stocks. While we acknowledge the potential of CPRT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CPRT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Apple tariff threats, Copart Q3 earnings, Booz Allen layoffs
Yahoo Finance host Julie Hyman tracks today's top moving stocks and biggest market stories in this Market Minute, including Apple's (AAPL) share hit after President Trump commented that he could impose a 25% tariff against the iPhone maker, Copart's (CPRT) fiscal third quarter earnings miss, and Booz Allen Hamilton (BAH) announcing layoffs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. And it's time for Yahoo! Finance's market minute. US stocks on pace for weekly losses, investors assessing President Trump's new tariff threats against the European Union, and what his giant tax bill means for the deficit and the economy. Apple shares taking a direct hit as Trump includes the tech giant in his tariff rhetoric. The President saying the company must pay a 25% tariff on iPhones sold but not made in the U.S. Apple's market capitalization back below the $3 trillion threshold. Shares of Copart, a platform for online car auctions, falling the most since March 2020. That's after the company missed revenue estimates for the third quarter. J.P. Morgan also noting organic growth for Copart is lagging peers. And Booz Allen Hamilton stock sinking as its outlook disappoints. The consulting firm and government contractor also announcing layoffs amid federal cost-cutting efforts, expecting to cut about 7% of its staff. And that's your Yahoo! Finance market minute. For more and what's trending on Yahoo! Finance scan the QR code below.
Yahoo
23-05-2025
- Business
- Yahoo
Apple tariff threats, Copart Q3 earnings, Booz Allen layoffs
Yahoo Finance host Julie Hyman tracks today's top moving stocks and biggest market stories in this Market Minute, including Apple's (AAPL) share hit after President Trump commented that he could impose a 25% tariff against the iPhone maker, Copart's (CPRT) fiscal third quarter earnings miss, and Booz Allen Hamilton (BAH) announcing layoffs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
