The stock of Copart (CPRT) is down about 2% on Nov. 21 after the used vehicle auction company reported mixed financial results for its Fiscal first quarter.
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Copart announced earnings per share (EPS) of $0.41, which beat analysts’ consensus estimate of $0.40 a share. However, revenue of $1.16 billion for the quarter missed Wall Street forecasts of $1.18 billion, sending the stock lower.
While Copart has beaten consensus earnings estimates three times in the past four quarters, its revenue has surpassed forecasts only once. Management has said that the company, which runs online auctions for the sale of used vehicles, is struggling as the U.S. economy slows down.
Copart’s Struggles
Copart said that it experienced a decline in its U.S. inventory, the number of used cars available for auction, of 17% in Q3 from a year earlier. The company’s global units sold decreased by 6.7%, while fees generated internationally declined by 6.3%, meaning Copart sold fewer used vehicles at lower prices during the quarter.
Analysts expect Copart’s revenue to grow 7.4% over the next 12 months, similar to its two-year rate. Copart’s earnings grew at an 18% compounded annual growth rate (CAGR) over the last five years, higher than its 15.7% annualized revenue growth. CPRT stock has declined 30% in 2025.
Is CPRT Stock a Buy?
The stock of Copart has a consensus Hold rating among six Wall Street analysts. That rating is based on two Buy, three Hold, and one Sell recommendations issued in the last three months. The average CPRT price target of $51 implies 27.02% upside from current levels. These ratings could change after the company’s financial results.
