Copart (NASDAQ:CPRT) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Copart (NASDAQ:CPRT) announced its earnings results on Thursday. The business services provider reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.03), FiscalAI reports. Copart had a net margin of 33.76% and a return on equity of 16.95%. The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.15 billion. During the same period in the previous year, the firm earned $0.40 EPS. The firm’s revenue for the quarter was down 3.6% compared to the same quarter last year.

Here are the key takeaways from Copart’s conference call:

• Consolidated revenue fell 3.6% year‑over‑year to $1.12 billion and net income declined 9.5% (EPS $0.36, down 9.2%), though adjusted gross margin widened 178 bps; results were affected by prior‑year catastrophe volumes and a $6.8M one‑time international VAT accrual.
• Insurance unit volumes weakened—global insurance units down ~9.3% (≈4.1% ex‑cat) and U.S. insurance units down 10.7% (≈4.8% ex‑cat)—driven by carrier policy shifts and consumers reducing coverage, creating near‑term volume headwinds.
• Copart reported record selling outcomes for U.S. insurance consignors with U.S. insurance ASPs up 6% (9% ex‑cat), which management attributes to marketplace liquidity, rising international buyer participation, and improved data‑driven merchandising.
• Balance sheet and capital return: Copart ended the quarter with roughly $6.4 billion of liquidity (including $5.1B cash), no debt, free cash flow up 58% YTD, and repurchased over 13 million shares for >$500 million so far in the fiscal year.
• Management highlights competitive moats and productivity gains from technology and operations—wide AI deployment across functions, ~1,000 engineers, the largest Title Express platform and tow network, and faster cycle times that support service differentiation.

Copart Trading Down 3.1%

Shares of CPRT opened at $36.48 on Friday. The firm has a market capitalization of $35.31 billion, a price-to-earnings ratio of 22.80 and a beta of 1.08. The firm’s fifty day simple moving average is $39.44 and its 200-day simple moving average is $42.59. Copart has a twelve month low of $33.81 and a twelve month high of $63.85.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on CPRT. Barclays reiterated an “underweight” rating and issued a $33.00 price objective (up previously from $32.00) on shares of Copart in a report on Friday, November 21st. Robert W. Baird set a $48.00 price target on shares of Copart and gave the stock an “outperform” rating in a research report on Friday. JPMorgan Chase & Co. lowered their price objective on shares of Copart from $50.00 to $45.00 and set a “neutral” rating for the company in a research note on Monday, November 24th. Finally, CJS Securities raised shares of Copart to a “strong-buy” rating in a research note on Thursday, December 11th. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Copart presently has an average rating of “Moderate Buy” and an average target price of $46.80.

Insiders Place Their Bets

In related news, CEO Jeffrey Liaw sold 25,137 shares of the stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $40.17, for a total value of $1,009,753.29. Following the transaction, the chief executive officer owned 55,970 shares of the company’s stock, valued at $2,248,314.90. This represents a 30.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Thomas N. Tryforos sold 100,000 shares of Copart stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $39.07, for a total value of $3,907,000.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 9.60% of the company’s stock.

Hedge Funds Weigh In On Copart

Several hedge funds have recently added to or reduced their stakes in the stock. Triumph Capital Management lifted its position in shares of Copart by 424.2% during the 4th quarter. Triumph Capital Management now owns 1,017 shares of the business services provider’s stock worth $40,000 after buying an additional 823 shares during the last quarter. DV Equities LLC acquired a new stake in Copart during the 4th quarter worth $48,000. Larson Financial Group LLC lifted its position in Copart by 36.7% in the third quarter. Larson Financial Group LLC now owns 1,363 shares of the business services provider’s stock valued at $61,000 after acquiring an additional 366 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in Copart by 365.8% in the first quarter. Geneos Wealth Management Inc. now owns 1,118 shares of the business services provider’s stock valued at $63,000 after acquiring an additional 878 shares in the last quarter. Finally, Zions Bancorporation National Association UT boosted its stake in Copart by 27.1% in the fourth quarter. Zions Bancorporation National Association UT now owns 2,292 shares of the business services provider’s stock valued at $90,000 after acquiring an additional 488 shares in the last quarter. 85.78% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Copart

Here are the key news stories impacting Copart this week:

• Positive Sentiment: Management signaled continued investment in land capacity and AI to support long-term growth, which could strengthen Copart’s competitive position as insurance volumes normalize. Copart signals continued investment in land capacity and AI as insurance volumes decline 9%
• Neutral Sentiment: Company released full Q2 results and the earnings call transcript (details and management commentary available), useful for investors assessing guidance and strategy. Copart Reports Second Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Short-interest reports in the feeds show anomalous zero/NaN values for February data; treat these as unreliable until exchanges publish confirmed figures. Market data / short interest
• Negative Sentiment: Q2 EPS of $0.36 missed the consensus ~$0.39 and revenue of ~$1.12B missed estimates (~$1.15B); revenue declined ~3.6% year-over-year — primary drivers of the selloff. Copart Inc (CPRT) Q2 2026 Earnings Call Highlights
• Negative Sentiment: Immediate market reaction: multiple outlets report the stock plunged (near 52-week lows) and note analyst downgrades following the miss. Expect heightened volatility and further analyst scrutiny. Copart Slides After Q2 Miss, Shares Near 52-Week Lows
• Negative Sentiment: Coverage and commentary emphasize unit-volume headwinds in the insurance channel and downward revisions from some analysts, which could pressure earnings estimates near term. Copart Stock (CPRT) Is Crashing on Earnings Miss and Analyst Downgrades

Copart Company Profile

Copart (NASDAQ: CPRT) is a global provider of online vehicle auction and remarketing services, focused primarily on the sale of salvage and clean-title vehicles. The company operates a technology-driven auction platform that connects sellers — including insurance companies, vehicle finance firms, rental car companies, dealerships and fleet owners — with a broad buyer base consisting of vehicle dismantlers, recyclers, rebuilders and retail buyers. Copart’s business model centers on efficient vehicle disposition using digital bidding and logistics services to maximize recovery value for its clients.

Core services include hosting live and timed online auctions, vehicle listing and inspection support, title processing, and transportation and storage solutions.