Online vehicle auctioneer Copart's fourth-quarter profit falls as expenses rise
04/09/2024 23:33
Sept 4 (Reuters) - Online vehicle auction services
provider Copart CPRT.O reported a fall in fourth-quarter
profit on Wednesday, weighed down by higher expenses and sagging
used-car values.
Shares of the company, which primarily provides auction
services to sell damaged and total-loss vehicles to used-car
dealers and dismantlers, fell about 6% after the bell.
The company has been industriously investing to enhance
capacity by expanding its infrastructure and real estate,
racking up its operating expenses.
The company has also absorbed modest impacts of dropping
value for used cars, squeezing auction selling prices.
Copart reported net income of $322.6 million, or 33 cents
per share, for the quarter ended July 31, down from $347.8
million, or 36 cents per share, a year earlier.
The Dallas, Texas-based company's fourth-quarter total
revenue rose 7.2% to $1.07 billion, bolstered by healthy salvage
auction volumes. It was largely in line with the average analyst
estimate of $1.08 billion , according to LSEG data.
(Reporting by Raechel Thankam Job; Editing by Maju Samuel)
((RaechelThankam.Job@thomsonreuters.com;))