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Copart Stock Drops Despite Earnings Beat as Growth Concerns Linger
Copart Stock Drops Despite Earnings Beat as Growth Concerns Linger
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BTCCSquare news:
Copart shares fell 4.1% despite reporting Q4 earnings of $0.41 per share, surpassing analyst estimates of $0.36. Revenue reached $1.13 billion, slightly below the projected $1.14 billion. While quarterly profits grew 24% year-over-year, the slowdown in sales growth to 5% from 10% annual growth raised investor concerns.
The company's valuation at 33 times earnings appears stretched given its 14% annual earnings growth. Free cash FLOW metrics paint an even bleaker picture, suggesting a 40x multiple. Market participants appear focused on decelerating growth rather than the earnings beat, reflecting heightened sensitivity to valuation in the current market environment.
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