Copart (CPRT) Posts Strong Revenue & Profit Growth—But Market Yawns in After-Hours

Another quarter, another earnings beat—but Wall Street’s algo-traders clearly didn’t get the memo.

Numbers don’t lie (even if traders do). The online auto auction giant delivered rising revenue and profit, yet shares dipped after the bell. Classic case of ’buy the rumor, sell the news’—or just another day in the casino?

Bullish fundamentals meet bearish trading. Someone’s betting against the house—and the house always wins.

TLDR

• Q3 FY25 revenue grew 7.5% year-over-year to $1.2 billion.
• Net income rose 6.4% to $406.6 million in the quarter.
• Diluted EPS improved 7.7% to $0.42 from $0.39 last year.
• Shares fell over 4% in after-hours trading despite solid earnings.
• CPRT boasts a 5-year return of 181.32%, beating the S&P 500.

Copart, Inc. (NASDAQ: CPRT) closed at $60.66 on May 22, 2025, down 0.70% during regular trading. Shares fell further to $58.00 in after-hours trading, dropping 4.39%.

Copart, Inc. (CPRT) Stock

This movement came after the company released its third-quarter results for fiscal 2025 and hosted its earnings call at 5:30 PM EDT on the same day.

For the quarter ending April 30, 2025, Copart posted revenue of $1.2 billion, marking a 7.5% year-over-year increase. Gross profit ROSE 5.1% to $552.3 million, while net income attributable to the company climbed 6.4% to $406.6 million. Fully diluted earnings per share reached $0.42, up from $0.39 in the same quarter last year, reflecting a 7.7% improvement.

Copart, $CPRT, Q3-25. Results:
🔴 -3.2% Post-Market

📊 Adj. EPS: $0.42 🟢
💰 Revenue: $1.21B 🔴
📈 Net Income: $406.6M
🔎 Strong quarter driven by sustained revenue growth and solid operating margins across global markets. pic.twitter.com/wFStEpcfpq

— gtG (good to Great) (@g00dtoGreat) May 22, 2025

The company has managed to grow both its top and bottom lines despite macroeconomic headwinds, signaling continued strength in its vehicle remarketing and salvage auction business.

Nine-Month Results Highlight Consistency

Copart also delivered solid results over the first nine months of fiscal 2025. Revenue totaled $3.5 billion, up 11.2% year-over-year. Gross profit improved by 9.4% to reach $1.6 billion, while net income attributable to Copart rose 11.1% to $1.2 billion. Earnings per share for the period stood at $1.18 compared to $1.07 last year, representing a 10.3% increase.

These figures demonstrate consistent growth over a sustained period, driven by continued demand for online auto auctions and an efficient, tech-driven operating model.

After-Hours Drop Despite Strong Fundamentals

Despite the solid earnings report, the stock declined in after-hours trading. This could reflect investor profit-taking or a cautious sentiment around valuation, especially after a strong multi-year run. While the company continues to post double-digit growth across several key metrics, some investors may be looking for signs of acceleration beyond current levels.

Still, Copart’s fundamentals remain intact, and the after-hours reaction does not detract from its strong quarterly and year-to-date performance.

Long-Term Outperformance Versus Benchmark

Copart’s long-term returns continue to impress. As of May 22, 2025, the stock has delivered a 5-year return of 181.32%, nearly doubling the S&P 500’s 97.67%. Over three years, CPRT has gained 116.43%, far exceeding the S&P 500’s 49.74%. For the past year, Copart returned 12.44%, outpacing the benchmark’s 10.08%.

Even year-to-date, CPRT has managed a 5.70% gain while the S&P 500 has slipped 0.67%, further underscoring the company’s resilience.