Copart Q3 Earnings Beat Estimates on Higher ASPs, Mix Shift

Copart, Inc. CPRT delivered third-quarter fiscal 2026 earnings of 43 cents per share, which rose 2.4% year over year and beat the Zacks Consensus Estimate of 41 cents by 4.9%. Quarterly revenues rose 2.1% year over year to $1.24 billion and topped the Zacks Consensus Estimate of $1.21 billion by 2.4%.The quarter reflected resilient pricing amid softer volumes. Average selling prices (ASPs) increased 4.6% while unit volumes declined 2.4%, helping lift revenues despite pressure in global insurance units, which fell 2.7%.Copart, Inc. Price, Consensus and EPS Surprise Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. QuoteCPRT’s Revenue Mix Improves as Vehicle Sales GrowService revenues remained the primary engine, rising 2.1% year over year to $1.06 billion. Vehicle sales advanced 2.3% to $181 million, adding a modest but helpful tailwind to consolidated growth.The continued expansion in average selling prices across channels more than offset lower volumes. The company reported low-single-digit growth in global assignment volumes, even as global inventory declined by 2% from the prior year.Copart’s Margins Expand Despite Higher Facility CostsGross profit increased 3.7% to $572.6 million, and gross margin expanded 71 basis points to 46.3%. Cost of vehicle sales declined 5.6% to $160.3 million, helping offset higher facility operations expenses, which rose 2.5% to $450.3 million.Operating leverage was mixed below the gross line. General and administrative expenses increased 7.2% to $93.7 million, and total operating expenses rose 1.7% to $772.8 million. Even with that uptick, operating income grew 2.8% to $464.3 million, reflecting the benefit of stronger gross profit and continued operating discipline.CPRT’s U.S. Business is Steady as Units FallThe United States segment posted total revenues of $1 billion, down 0.4% year over year, as higher revenue per unit was offset by lower volumes. The U.S. insurance volumes decreased 4.2%, consistent with softer claims activity tied to consumer insurance affordability dynamics.Beyond insurance, the company noted encouraging momentum across parts of its diversified seller base. Dealer Services and powersports units increased 1%, BluCar commercial consignment expanded more than 4%, and combined fleet and finance seller volume grew at a double-digit pace, partly offset by higher repair activity among rental customers.Copart’s International Segment Drives Incremental GrowthInternational revenues climbed 14.1% year over year to $234.2 million, supported by a 5.9% increase in total units sold and solid fee momentum. Service revenues in the international segment increased as revenue per unit benefited from strong average selling price gains, with insurance ASPs up 8.4% and noninsurance ASPs up 16.7%.Profitability also strengthened overseas. International operating income rose to $73.8 million, translating to a 31.5% operating margin.CPRT’s Cash Position Strengthens as Buybacks ContinueAs of April 30, 2026, Copart had cash, cash equivalents and restricted cash of $3.35 billion, up from $2.78 billion as of July 31, 2025. Liquidity was approximately $5.5 billion, including cash, equivalents and held-to-maturity securities, providing flexibility for investment and capital returns.Cash flow reflected heavy capital allocation activity. Net cash provided by operating activities for the first nine months of fiscal 2026 was $1.25 billion, while purchases of property and equipment totaled $258.6 million. The company also repurchased $1.63 billion of common stock during the first nine months, underscoring an ongoing commitment to returning capital alongside investments in land, facilities and technology.Copart’s Operating Drivers Centered on Returns and ServicesThe auction returns remain a key lever in the insurance ecosystem. In the quarter, U.S. insurance average selling prices increased 4.1%, supported by a broad and diversified buyer base, including international demand that the company said represents a meaningful share of U.S. auction proceeds.The company continues the expansion of value-added services that can lift revenue per unit over time. Title processing offerings and logistics initiatives, including its domestic long-haul delivery product, were framed as both revenue opportunities and tools to reduce friction for buyers and sellers across the platform.CPRT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Key Releases From Auto SpaceMobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes. On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks