Copart Earnings Miss Estimates, Shares Near Critical Lows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy CPRT?
Source: Benzinga
- Earnings Performance: Copart reported earnings per share of 36 cents, missing the consensus estimate of 40 cents, with revenue of $1.12 billion falling short of the expected $1.14 billion, indicating ongoing pressure on the company's revenue and profitability.
- Profit Decline: The company's gross profit fell 6.2% year-over-year to $492.8 million, while net income decreased by 9.5% to $350.7 million, reflecting weak market demand and rising costs negatively impacting profitability.
- Technical Weakness: Copart's stock is currently trading 14.2% below its 20-day simple moving average and 17% below its 100-day moving average, indicating a bearish trend, with a 35.33% decline over the past 12 months, approaching a critical support level at the 52-week low of $36.52.
- Mixed Market Performance: According to Benzinga Edge rankings, Copart has a quality score of 69.47, indicating a strong business model, but a momentum score of only 7.73 suggests significant challenges ahead, potentially impacting short-term stock performance.
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Analyst Views on CPRT
Wall Street analysts forecast CPRT stock price to rise
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 38.480
Low
33.00
Averages
43.33
High
52.00
Current: 38.480
Low
33.00
Averages
43.33
High
52.00
About CPRT
Copart, Inc. is a provider of online auctions and vehicle remarketing services. The Company provides vehicle sellers with a full range of services to process and sell vehicles over the internet through the Company’s Virtual Bidding Third Generation (VB3) internet auction-style sales technology. The Company sells principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and directly to the general public. Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental, banks, finance companies, and fleet operators. It operates more than 200 locations in 11 countries and has more than 175,000 vehicles up for auction every day. The Company operates in United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. It operates both as an agent and on a principal basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, the overall trend suggests increased confidence from analysts in certain stocks, potentially attracting more investor interest.
- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
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- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
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- Economic Data Impact: U.S. Q4 GDP grew by 1.4%, below the expected 2.8%, while the core PCE price index rose by 2.7%, exceeding expectations of 2.6%, suggesting inflation pressures may limit the Fed's ability to cut rates, affecting market sentiment.
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- Cash Flow Improvement: While operating cash flow remained stable at $662.8 million year-over-year, Copart significantly reduced capital expenditures by nearly half to $177.7 million, resulting in a strong free cash flow of $485.1 million, potentially reaching $970 million by fiscal year-end.
- Market Reaction: Following the earnings miss, Copart's stock fell 4.5% by Friday morning, reflecting investor concerns about the company's growth prospects amid declining sales and profits, which have worsened since Q1.
- Valuation Analysis: Although management did not provide specific guidance, if Copart meets its free cash flow expectations, the price-to-free cash flow ratio would be 37.4, and after accounting for $5.1 billion in net cash, the EV/FCF ratio drops to 32.1, suggesting the stock is relatively undervalued.
See More
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- Supreme Court Ruling Impact: The U.S. Supreme Court's 6-3 decision invalidates significant portions of Trump's tariff agenda, ruling that the executive branch lacks the authority to impose such levies unilaterally, which may reshape future trade policies and boost market confidence in economic recovery.
- Weak Economic Data: U.S. Q4 GDP growth was only 1.4%, significantly below the expected 2.8%, indicating signs of economic slowdown, while the core PCE price index rose to 2.7%, exceeding expectations of 2.6%, which may lead the Fed to maintain interest rates in upcoming meetings.
- Corporate Earnings Performance: Over 75% of S&P 500 companies have reported earnings, with 74% exceeding market expectations, indicating resilience in corporate profitability, and Q4 earnings growth is projected to reach 8.4%, providing support for the stock market.
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