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Why Copart, Inc. (CPRT) is Poised to Beat Earnings Estimates Again

Zacks

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Copart, Inc. CPRT, a firm in the Auction and Valuation Services industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, CPRT has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, CPRT was expected to post earnings of 26 cents per share, while it actually produced 33 cents per share, a beat of 26.9%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 38 cents per share, when it actually saw 47 cents per share instead, representing a 23.7% positive surprise.

Copart, Inc. Price and EPS Surprise

Copart, Inc. Price and EPS Surprise | Copart, Inc. Quote


Thanks in part to this history, recent estimates have been moving higher for Copart. In fact, the Earnings ESP for CPRT is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for CPRT, as the firm currently has a Zacks Earnings ESP of +3.81%, so another beat could be around the corner.

This is particularly true when you consider that CPRT has a great Zacks Rank #1 (Strong Buy), which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that CPRT could see another beat at its next report, especially if recent trends are any guide.

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