Copart Inc

CPRT: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$23.00	Svf	Twpxrnlm

Copart Earnings: Wide Moat Brings More Unit Growth and Margin Expansion to Start Fiscal 2024

David Whiston

Nov 17, 2023

Copart started fiscal 2024 with a strong quarter, with EPS of $0.34 up 36% year over year, beating the Refinitiv consensus by a penny. We raise our fair value estimate to $45 from $42 on a higher long-term operating income growth rate than previously modeled and from raising our fiscal 2024 operating margin expectation. First-quarter’s mark of 38.7%, up 380 basis points, beat our full-year projection of 37%, so we now model slightly more than 38%. Our midcycle operating margin is now 120 basis points higher at 40.2% to capture the power of Copart’s wide moat enabling more auction volume and scale over time.

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