Copart reported fourth quarter revenue of $1.15 billion, slightly exceeding consensus estimates, but diluted EPS of $0.35 fell short of the $0.39 expected by analysts. The company experienced significant margin pressure during the period, with operating income declining 10.6% year-over-year as expenses outpaced a modest 2.4% increase in total revenue.
Key Highlights
- Service revenues totaled $969.5 million, a 1.4% year-over-year increase that missed the internal estimate of $1.03 billion.
- Gross profit declined 5.5% to $481.4 million, driven by higher facility operations costs and an 11.4% rise in the cost of vehicle sales.
- General and administrative expenses surged 16.6% to $97.8 million, contributing to the contraction in operating margins.
- Net interest income fell 20.5% to $39.6 million, further weighing on bottom-line results compared to the prior year.