Copart stock dips as margin disappoints
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Copart (NASDAQ:CPRT) shares fell around 6% on Thursday after the online vehicle auctions company delivered weaker-than-expected margin for the fourth quarter.
Late Wednesday, Copart (CPRT) reported adj. EPS of $1.13 on revenue of $883.39M (+18.0% Y/Y), both topping analysts estimates.

Service revenue totaled $707.8M, while vehicle sales came to $175.6M.
However, gross margin of 43.2% fell below Bloomberg consensus estimate of 46.8%. Operating income grew 7.7% Y/Y to $324.8M vs. $350.7M consensus.
Commenting on the results, Guggenheim analyst Ali Faghri said that while volume and gross margin were worse than expected, this quarter likely reflected the peak negative impact from lower total loss rates and elevated towing costs. Higher purchase mix was once again a gross margin headwind, and inflationary cost pressures were also a factor, Faghri added.