Copart Inc (CPRT) recently released its financial results for the third quarter of fiscal year 2024, reporting a revenue of $1.13 billion, surpassing analyst expectations. However, the earnings per share (EPS) fell slightly short of estimates at $0.39 compared to the expected $0.41.

Founded in 1982 and based in Dallas, Texas, Copart operates an online salvage vehicle auction platform, facilitating over 3.5 million transactions annually across 11 countries. The company primarily serves vehicle dismantlers, rebuilders, and used vehicle retailers, with a significant portion of its volume coming from auto insurance companies.

Financial Performance

In the quarter ending April 30, 2024, Copart’s gross profit rose to $525.5 million, an 8.7% increase from the previous year. Net income grew by 9.1% to $382.3 million. Over the nine months of the fiscal year, revenue increased by 10.3% to $3.17 billion, with net income reaching $1.04 billion, a 16.9% increase.

Operational Efficiency

Service revenues climbed by 11.7% to $946.63 million in the quarter, while vehicle sales saw a modest 3.5% increase to $180.63 million. Operating expenses surged by 14.5% due to higher yard operations and administrative costs, which may raise concerns if the trend persists.

Balance Sheet and Cash Flow

As of April 30, 2024, Copart’s balance sheet displayed a strong financial position with total assets of $8.01 billion, up from $6.74 billion in July 31, 2023. The company’s investments in held-to-maturity securities and a robust cash balance contribute to its solid financial standing.