Copart revenue growth accelerates after two quarters of declines
The online vehicle-auction operator posted $1.2 billion in quarterly revenue, its highest growth rate in a year.
The online vehicle-auction operator Copart (CPRT) reported revenue growth that accelerated for the second consecutive quarter, reversing a year-long slowdown. Revenue for the three months ended April 30 rose 2.1% from a year earlier to $1.2 billion. That marked the fastest increase since the same quarter a year ago and followed a 0.7% gain in the prior quarter and a 3.6% decline in the October quarter.
The rebound was driven by a sharp turnaround in the company’s international business, where service revenues jumped 17.9% to $160.6 million. Operating income from the segment surged 24.9%, outpacing a 2.8% rise in overall operating income to $464.3 million. Gross margin expanded to 46.3%, up from 45.6% in the prior quarter and 45.2% in the October quarter, as cost of vehicle sales fell 5.6%.
Net income attributable to Copart slipped 1.0% to $402.4 million, a deceleration from an 11.5% increase in the prior quarter. Fully diluted earnings per share rose 2.4% to $0.43, compared with $0.41 in the January quarter and $0.36 a year earlier. The company said the per-share result reflected a lower share count after a $1.63 billion stock repurchase, the first such program disclosed in over a year.
Service revenues, which account for the bulk of sales, climbed 2.1% to $1.06 billion, while vehicle sales rose 2.3% to $181 million. General and administrative expenses increased 7.2%, accelerating from a 1.4% rise in the prior quarter, as the company invested in technology and global expansion.
Cash and equivalents swelled to $3.35 billion at quarter-end, up from $2.78 billion at the start of the period, driven by $933.5 million in net cash from investing activities. The company reduced its holdings of held-to-maturity securities to $845.6 million from $2.01 billion, while retained earnings fell to $7.65 billion from $8.63 billion after the share buyback.
Copart did not provide updated guidance for the current quarter. The company said it remains focused on expanding its global auction platform and improving operational efficiency.