Copart Q3 Net Income Slips to $402.4M Despite 2.1% Revenue Growth
CPRT is trading near its 52-week low of $32.2 (5.5% above the low) on elevated volume (1.9× avg).
Summary
Copart reported Q3 net income declined to $402.4 million from $406.6 million year-over-year, despite a 2.1% increase in revenue to $1.24 billion. Diluted EPS, however, rose to $0.43 from $0.42 in the prior year. This follows the 8-K filed earlier today which highlighted the 2.4% increase in diluted EPS and 2.1% revenue growth. The divergence between declining net income and rising EPS suggests the impact of the company's share repurchase program, which included over $1.1 billion in buybacks announced in Q2. The drop in absolute net income, even with higher revenue, indicates potential margin compression or increased costs that warrant scrutiny, despite the positive EPS growth driven by share count reduction.
At the time of this announcement, CPRT was trading at $33.98 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $33.1B. The 52-week trading range was $32.20 to $61.66. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: dpa-AFX.