Copart Inc (NASDAQ:CPRT) stock fell 4.50% (As on September 5, 11:14:38 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 25. During the fourth quarter itself, global insurance volumes sold decreased by 1.9% and U.S. insurance volumes declined by 2.1%. Year-over-year growth rates for the second half of the fiscal year were softer than in the first half for several reasons, including the ebbs and flows of business activity among individual auto insurance carriers themselves as they optimize for growth profitability. For the quarter specifically, the company experienced ASP growth globally of 5.4% for all insurance vehicles sold. And for the U.S. insurance clients, growth of 5.7% for the fourth quarter versus a year ago.
Moreover, for fiscal year 2025, global unit sales increased 4.8% and declined in the fourth quarter by 0.9%. Focusing on the U.S. business, for fiscal year twenty-five, unit growth was 4.1% with fee units growing 4.1% and purchase units growing 4.7%. The fourth quarter, unit sales declined 1.8%. This reflects fee units declining 1.2% and purchase units declining 16.7%. For the fiscal year 2025, the noninsurance unit volume increased 2.8% and decreased 2.1% in the fourth quarter. The fourth quarter decline in noninsurance U.S. volume was driven by the direct buy strategy, which resulted in Copart direct or Cash for Cars business line unit sales to decline 5.4% in FY twenty-five and 32.6% in the fourth quarter. Fee units increased 9.8% for the full fiscal year, and 3.6% for the quarter. Purchased units declined 1.8% for the full year and increased 1.9% for the quarter. Fee unit growth continues to benefit from the shift of insurance units, primarily in Germany transitioning from purchase contracts to consignment. The global inventory decreased 13.1% from the year-ago period. Overall, inventory levels in the U.S. decreased 14.8% year over year.
CPRT in the fourth quarter of FY 25 has reported the adjusted earnings per share of $0.41, beating the analysts’ estimates for the adjusted earnings per share of $0.37, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5.2 percent to $1.13 billion in the fourth quarter of FY 25, missing the analysts’ estimates for revenue by 1.85%. U.S. service revenue grew by 6.2% for the quarter and 10.4% for the year, and international service revenue grew by 18.9% for the fourth quarter and 18.9% for the year. As of July, the company had $6,000,000,000 of liquidity, which is comprised of $4,800,000,000 in cash and held to maturity securities and the capacity under the revolving credit facility.