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 Expectations

Copart reported fourth-quarter fiscal 2024 (ended Jul 31, 2024) adjusted earnings per share of 33 cents, missing the Zacks Consensus Estimate of 37 cents. This compares to earnings of 34 cents per share a year ago. The online auto auction leader generated revenues of $1.07 billion, beating the Zacks Consensus Estimate by 0.39%. This compares to year-ago revenues of $997.59 million.

Key Tidbits

Copart’s fiscal fourth-quarter service revenues came in at $893 million, which increased from $834 million recorded in the year-ago period. Service revenues accounted for 83.5% of total revenues. Vehicle sales totaled $175.9 million in the quarter, which grew from the prior year’s level of $163.3 million.

Gross profit was down 0.9% year over year to $453.6 million. General and administrative expenses rose 46.6% from the prior-year quarter to $81.3 million. Total operating expenses rose 16.9% to $709 million.

Operating income fell to $360 million from $390.6 million recorded in the year-ago quarter. Net income also declined 7.4% year over year to $322.2 million.

Copart had cash, cash equivalents and restricted cash of $1.51 billion as of Jul 31, 2024, compared with $957.4 million as of Jul 31, 2023.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Copart has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. It's no surprise Copart has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report