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Image source: Copart.

What: Online auction and vehicle remarketing services provider Copart (NASDAQ:CPRT) 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%.

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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.

CPRT Chart

CPRT data by YCharts.

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.

Timothy Green has no position in any stocks mentioned. The Motley Fool recommends Copart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.