Shareholders of Copart, Inc. (NASDAQ:CPRT) will be pleased this week, given that the stock price is up 11% to US$62.70 following its latest first-quarter results. Results overall were respectable, with statutory earnings of US$0.37 per share roughly in line with what the analysts had forecast. Revenues of US$1.1b came in 4.3% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Copart's ten analysts is for revenues of US$4.68b in 2025. This reflects a reasonable 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.6% to US$1.56. In the lead-up to this report, the analysts had been modelling revenues of US$4.58b and earnings per share (EPS) of US$1.55 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
The consensus price target increased 5.8% to US$59.26, with an improved revenue forecast carrying the promise of a more valuable business, in time. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Copart at US$66.00 per share, while the most bearish prices it at US$51.00. This is a very narrow spread of estimates, implying either that Copart is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Copart's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% annually. Even after the forecast slowdown in growth, it seems obvious that Copart is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Copart going out to 2027, and you can see them free on our platform here..
You can also see our analysis of Copart's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
