Stock Decline of Copart due to Q1 Earnings Report
In a recent financial announcement, Copart, the leading online vehicle auction platform, reported its earnings for the fiscal fourth-quarter 2025. The company's stock is currently trading at $48.57, within the day's range of $46.14 and $48.88.
The quarter saw Copart's sales grow by 5% year over year, amounting to $1.13 billion. This growth rate, while slower than the full-year sales growth of approximately 10%, still marks a significant achievement for the company. The Q4 profits growth was much stronger than seen earlier in the year, with earnings per share reaching $0.41, a 24% increase year over year.
Copart's gross margin remained steady at 44.67%, reflecting the company's efficient operations. The company's free cash flow for the quarter was $1.2 billion, valuing the company on free cash flow at a multiple closer to 40x.
The company's total sales growth for the full year approached 10%, with earnings growth for the full year being 14% compared to fiscal 2024. This growth is particularly impressive given the challenging economic conditions faced by many businesses.
Looking ahead, most analysts expect Copart's long-term growth rate to be around 13%. While the name of the specific analyst estimating this growth rate is not explicitly mentioned in the available search results, this expectation is in line with the general consensus among financial analysts.
The volume of Copart's stock today is 17,584,733, slightly higher than the average volume of 6,971,097. This increased volume suggests a heightened interest in Copart's financial performance and future prospects.
Copart's 52-week range for its stock is between $45.05 and $64.38, indicating a steady performance over the past year. Despite the stock's current price being near the upper end of this range, analysts remain optimistic about Copart's future prospects.
In summary, Copart's Q4 earnings and sales growth show a resilient company navigating through challenging times. With analysts forecasting Copart to earn $0.36 per share on $1.14 billion in sales for the quarter, and expectations of a long-term growth rate of around 13%, Copart continues to be a strong choice for investors seeking growth opportunities.
