What: Online auction and vehicle remarketing services provider Copart (CPRT 2.47%) jumped on Thursday following the company's fiscal third-quarter report. At 11:45 a.m. EDT, the stock was up about 9.5%.
So what: Copart reported revenue of $347.2 million, up 16.9% year over year, and about $26 million higher than the average analyst estimate. The revenue increase was mostly driven by service revenue, which rose 18.3% year over year to $303.5 million. Vehicle sales generated $43.7 million of revenue, up 7.8%.
EPS came in at $0.64, up from $0.44 during the prior-year period and $0.10 higher than analysts were expecting. Gross margin rose to 45.4%, up from 42.9% during the prior-year period. Share buybacks over the past year helped boost per-share earnings, with the company's diluted share count declining by 11.9% year over year.
Now what: With two big earnings beats in a row, shares of Copart continue their multi-year climb higher. The stock has now more than doubled over the past five years.
The company's revenue growth can be volatile, so investors shouldn't expect double-digit growth every quarter. Copart reported a string of disappointing earnings reports last year, with revenue slumping for five quarters in a row. But with that period of weakness now behind it, investors are pushing the stock higher.